As the critical date of July 9 approaches, the cryptocurrency market remains uncertain due to tariffs and the absence of interest rate cuts.
Impact of Tariffs on Inflation and Cryptocurrencies
The looming tariffs are putting additional pressure on global inflation and increasing recession risks. The deadline set by President Trump for July 9 is crucial. These tariffs significantly affect cryptocurrencies, triggering major market movements. As of the writing of this article, Treasury Secretary Bessent made one of his final demands, suggesting non-compliant countries might revert to April tariff rates.
Officials' Statements
It is anticipated that we might see a drop in interest rates due to inflation being very low. The Fed's major blunder in 2022 regarding interest rates indicates indecision. We have not encountered tariff-induced inflation; this might be a one-time price adjustment.
"A "storm" of trade agreements is anticipated before the July 9 deadline. Tariffs are arguably the most transient factor for inflation. If resistance persists, tariffs might increase again."
Outlook for the Coming Week
Furthermore, European Union Trade Commissioner Sefcovic spoke for the first time after the U.S. extended its latest deal offer, stating:
"I will depart for the U.S. on Tuesday following the high-level meeting in Turkey for trade negotiations."
An important week lies ahead for the cryptocurrency market as participants await news on tariffs and potential agreements that could significantly influence the market.
