Why is crypto down today? – Inflation, tariff fears & more…
Main Idea
Cryptocurrency and U.S. equities markets declined due to inflation concerns, tariff fears, and reduced expectations of a Fed rate cut in September.
Key Points
1. Bitcoin (BTC) dropped 3% below $115K, and the S&P 500 Index (SPY) declined by 37 basis points amid new macro headwinds.
2. The White House formalized increased tariffs (10% to 40%) on various imports, with Canada facing a steeper 35% tariff, up from 25%.
3. Core PCE inflation rose to 2.8% year-on-year, above the Fed’s 2% target, reducing the likelihood of a September rate cut (odds dropped from over 60% to 41%).
4. Dogecoin (DOGE), Cardano (ADA), and Ripple (XRP) saw significant sell-offs (8%, 8%, and 6% respectively), while Solana (SOL) and Binance Coin (BNB) also declined.
5. Market sentiment was further impacted by concerns over tariff-driven inflation and reduced expectations for Fed rate cuts.
Description
The market was now pricing nearly 60% chance of another Fed rate pause in September
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