Bitcoin and Ether Face Price Fluctuations as Dollar Index Exceeds 100
Major cryptocurrencies displayed volatility on Friday amid a strengthened dollar following President Trump's new tariff announcements. Key points include:
- Bitcoin (BTC) dipped to $114,290 before recovering to around $115,900.
- Ether (ETH) dropped to $3,616 but rebounded to approximately $3,690.
- The dollar index (DXY) rose above 100, marking its highest level since late May, gaining over 3% in four weeks.
- Trump's tariffs include a universal 10% rate for certain countries and a 15% floor for trade surplus nations, potentially increasing inflationary pressures.
- Core PCE inflation rose to 2.6% year-over-year in June, with the core figure at 2.8%, complicating the Fed's ability to cut rates quickly.
- Expectations for a September rate cut have decreased significantly, from over 75% to 41% according to the CME FedWatch Tool.
- The Japanese yen fell past 150.50 per dollar, influenced by comments from BOJ Governor Kazuo Ueda regarding cautious monetary policy.
- Friday's U.S. nonfarm payrolls report is anticipated to impact market conditions for both crypto and traditional assets.
In summary, market dynamics suggest potential volatility for cryptocurrencies amid economic policy shifts and inflation concerns.