Why is crypto down today? – Inflation, tariff fears & more…

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.