As August kicks off, major cryptocurrencies like Bitcoin $BTC (BTC) and #Ethereum Ethereum(ETH) are facing renewed volatility amid a surge in the U.S. dollar. The trigger? Fresh global tariffs announced by former President Donald Trump — a move expected to spark inflation concerns and complicate the Federal Reserve’s rate-cut path.
📉 #bitcoin $BTC & #Ethereum $ETH React to Market Jitters
Early Friday, Bitcoin briefly dipped to $114,290, testing a key support trendline before rebounding near $115,900. Ether followed suit, recovering from $3,616 to trade around $3,690.
These sharp moves come as the U.S. Dollar Index (DXY) climbs above 100 — its highest level since May — fueled by fears of inflation from tariff-led trade pressures. A stronger dollar traditionally pressures risk assets like crypto.
🇺🇸 Inflation Signals & Fed Uncertainty
The new tariffs — including a universal 10% rate and a 15% minimum for trade-surplus countries — are already reflecting in U.S. inflation data. The core PCE index rose 2.8% in June, matching May’s pace, limiting the Fed’s flexibility to cut interest rates.
According to Matt Mena of 21Shares, market expectations for a September rate cut have sharply dropped, now sitting at just 41%.
📊 Why It Matters for Crypto Investors
Stronger Dollar = Cautious Crypto: A firm greenback signals tighter liquidity conditions.
Tariff Shock: Traders are bracing for the inflation impact of these sweeping trade policies.
Fed’s Next Move: All eyes are now on the upcoming U.S. Nonfarm Payrolls report, as it may shape the Fed’s next decision.
Binance users and traders should stay alert — macroeconomic trends are increasingly shaping digital asset performance.
