Amid economic turbulence, Bitcoin's value dropped towards $112,000 marking the lowest level in three weeks. This decline has been influenced by the impending imposition of new tariffs and underwhelming employment data from July. While trade negotiations between the US and China have resumed, the upcoming tariff review adds to ongoing uncertainty.
Economic Data on the Horizon
An executive order from Donald Trump to expand import tariffs will significantly impact global supply chains. Upcoming releases of S&P Global Services PMI and ISM Services PMI data on August 5 are eagerly anticipated, as they may reveal a slowing US economy, a sentiment echoed in last week’s disappointing employment report.
Impact of Major Tech Earnings
The second quarter earnings season continues with major players like Palantir and AMD set to report. According to Kobeissi Letter, these earnings are expected to "intensify fluctuations in August." The strong performance of tech and AI giants has already led to volatility in indices, significantly influencing cryptocurrency traders' strategic decisions.
Current Cryptocurrency Market Situation
As the new week began, the total capitalization of the cryptocurrency market reached $3.8 trillion. Despite this recovery, Bitcoin remains priced at $114,500, 6.7% lower than its all-time peak. Ethereum is holding steady, rebounding from $3,400 to settle at $3,560 within a narrow range. Nonetheless, market experts caution that uncertainties persist, and upcoming PMI data or dovish guidance from Powell could potentially spark an upward rally.
Investors remain cautious as they anticipate key geopolitical and economic developments expected this week. The looming tariffs, Federal insights, and corporate earnings reports create a volatile environment, leaving traders on edge for possible market outcomes.
