President Donald Trump signed 14 new trade letters indicating a potential 25% tariff on Japan and South Korea starting August 1. While the cryptocurrency and global markets have not shown extreme reactions due to previous tariff delays, the implementation could significantly hinder global growth and disrupt markets. Market participants are closely monitoring critical developments such as the debt plan at the end of July and the Jackson Hole meeting.
Tariff Pressure Alters Global Financial Equilibrium
Currently, the threat of tariffs, the looming debt ceiling issue, and the Jackson Hole schedule are all coinciding. U.S. economic expenditures are sustaining corporate profits and household income through interest payments, keeping the economy buoyant and alive. However, Federal Reserve Chair Jerome Powell is observing the situation. The Fed is gradually reducing liquidity by trimming $5 billion in Treasury securities and $35 billion in mortgage bonds each month.
If the tariffs are not postponed, tightening financial conditions and weakened Asian supply chains could reverse the “Goldilocks” scenario, turning the picture negative. Thus, participants are carefully tracking critical developments that could influence the markets. The most crucial dates for cryptocurrencies and global markets are the debt announcement on July 31, the tariffs on August 1, and the Jackson Hole meeting from August 21-23.
Silence in Crypto Market May Foreshadow Storm
Data from CVI indicates that volatility in the cryptocurrency market is at historic lows. Nevertheless, the largest cryptocurrency, Bitcoin 
$91,967, is trading just 3% below its record high due to purchases from ETFs and public companies. While Strategy has temporarily halted Bitcoin purchases and plans a $4.2 billion preferred stock issuance, Metaplanet has announced its intentions for Bitcoin-backed acquisitions targeting Japanese digital banks.
In the altcoin market, the activity is significantly higher. The SEC’s request to update spot ETF applications for altcoin Solana 
$143 by the end of the month strengthens the possibility of early approval. The ETF approval anticipation has intensified competition among memecoin issuance platforms like Pump.fun and Bonk.fun. Despite the summer lull, the current low volatility conditions bring the potential for sudden movements within the quarter, making it challenging to predict the direction of these movements.
