🚀 Crypto Markets Rocket to New Highs as Global Tariff Shifts Steal Spotlight

Digital assets defy gravity while trade wars dominate headlines

Bullish breakout: Bitcoin and altcoins surge on institutional inflows and retail FOMO. ETH flips key resistance, SOL reclaims $200—traders eye Q3 for next leg up.

Meanwhile in TradFi land: Politicians rediscover tariffs like it's 2018. Spoiler alert: corporations will pass costs to consumers (again).

Crypto's proving its worth as the hedge against economic theater. When the old system zigzags, decentralized networks just keep building.

The Impact of Fed’s Rate Decisions and Tariffs

Tariffs being implemented on August 1st seem to have lost their grip on risk markets. The United States, in an attempt to intensify the negotiations, has made its final proposition. Recent statements indicate ongoing negotiations, with Indian government sources confirming the first phase of a trade deal discussed with the US. WHITE House Advisor Hassett also mentioned continuous trade talks with the EU, Canada, and Mexico.

The price discovery for BTC persists, with agreement announcements potentially boosting prices further. At the time of writing, BTC was hovering NEAR the $122,000 mark.

Concerns around Hammack not echoing the desired rhetoric about interest rates also emerged, adding layers to the economic dialogue.

Uncertainties Plaguing Economic Futures

Despite maintaining a neutral stance at every Fed meeting, Hammack pointed out that while inflation is nearing the Fed’s target, it remains significantly high. He emphasized the Fed’s commitment to a restrictive monetary policy as the inflation target has yet to be achieved.

Fed officials are embroiled in comprehensive debates over the economy, with uncertainties placing many business plans on hold, adversely impacting investments. The outcome remains elusive concerning the economic revival expected later this year and the potential ramifications of tariffs.

Current projections indicate proximity to the neutral interest rate, negating the necessity for immediate rate cuts. However, Hammack assured that the Fed is prepared to act if economic weaknesses become pronounced.