The main cryptocurrencies experienced a bidirectional price action on early Friday, since the dollar remained an offer against the main fiduciary currencies after the announcement of President Donald Trump of the new rates.
Bitcoin (BTC) fell to $ 114,290, almost testing the April and June bullish trend line, but since then it has recovered to operate about $ 115,900, according to Coindesk data. Ethher (ETH), the second largest token for market value, imitated the price share of BTC, erased the early fall at $ 3,616 to operate about $ 3,690.
The first nerves probably arose from Trump’s high range tariffs and the continuous increase in the dollar index (DXY) to more than 100, the highest since the end of May. The DXY, which tracks Greenback’s value against the main fiduciary currencies, has won more than 3% in four weeks, hinting at a possible financial adjustment that often leads to merchants to reduce their exposure to more risky assets.
Inflation fears rise Dxy
According to Robin Brooks, a member of the Brookings institution, the signs of inflation led by tariffs in the United States are driving the highest dollar.
“There are all kinds of reasons why people give why the dollar has fallen this year. In the root of all that is a simple macro story: the tariffs were supposed to raise inflation, and that simply did not happen as fast as people expected. Well, now it is happening. Inflation is approaching …” Brooks said in X.
On Thursday night, Trump announced radical tariffs on a global scale. The new order retained the “Universal” rate for the goods that reach the US to 10%, the level announced on April 2. However, this rate will apply only to countries with which the United States has a commercial surplus. Countries that export more to the United States will face a 15%tariff floor. Meanwhile, some Southeast Asia countries have been beaten with larger rates.
These additional tariffs are likely to exacerbate the inflationary impact of the taxes announced earlier this year. The data published on Thursday showed the impact of the initial rates slide to the preferred inflation measure of the FED, The Core PCE, in June
The Personal Consumer Expenses Price Index increased 2.6% year after year in June, compared to 2.4% in May. The central figure, which excludes volatile food and energy prices, increased 2.8% during the year, matching May’s rhythm and tied for its highest maximum since February.
The sudden renewed in inflation will probably make the FED reduce rates as wishes as President Trump wishes. Earlier this week, the Central Bank left the rates without changes in 4.25%, while crushing the hopes of the merchants of renewed rate cuts in September.
“The markets have delayed expectations for a September rate cut. According to the CME Fedwatch tool, the probabilities of a cut next month have fallen to only 41%, below 58% of the week makes 75% a month ago. A month ago. The decision of the Fed to keep the parked rates of this week and the call of President Powell for” greater confidence ” Disinflation has clearly resonated, “, Matt Mena, research crypt in 21Shars.
Mena added that the approach is now in the non -agricultural payroll report on Friday.
Yen slides in front of payrolls
The Japanese Yen depreciated more than 150.50 per dollar in Tokyo’s morning, hitting the lowest level in four months.
The decrease follows the comments on Thursday of the governor of Boj Kazuo Ueda, which indicated that the Japanese Central Bank is cautious when implementing an additional rate at an early date.
It is likely that both Yen and the BTC experience greater volatility after the launch of Friday’s payroll figures.
“The data probably determine if Powell has the green light to act, or if the Fed remains marginalized,” said Mena. “For cryptographic financial conditions, the louder financial conditions would be a great tail wind. Bitcoin has historically tracked global liquidity with a short delay. If work data confirms an economy of cooling and fed pivots, BTC could continue its highest routine, with $ 150K and $ 200K still at stake in this cycle.”
