This week is crucial for tariffs and market volatility as recent announcements will further influence outcomes. Bitcoin 
$64,421 surpassed $110,000, yet quickly retreated to settle around $109,000. Despite strong employment figures, the absence of an expected interest rate cut for July tempers short-term market declines, suggesting any deep plummets are purely speculative. The focus now turns to the statements from the Treasury Secretary.
US Announcements and the Impact on Cryptocurrency
As of this Wednesday, discussions will move away from potential tariff rates toward the lasting effects these rates can have on inflation. The EU remains firm in its stance, subtly warning with the phrase, “every option is on the table.” Meanwhile, the Treasury Secretary emphasized the urgent need for countries to prevent reversion to April’s rates.
“Thus far, tariffs have not caused notable damage. I rely on the market’s perspective, rather than economists.” Regarding the trade agreement with Vietnam, it is nearly finalized, indicating Vietnam’s 20% tariff is standalone, and mutual terms are applied. Tariffs may lead to one-time price increases.
More trade agreements are likely, cautioning nations to remain vigilant. If not handled adeptly, tariff rates could revert to those from April 2.
This morning, discussions were held with EU trade officials, brewing anticipation for future collaborative efforts. This weekend, US Trade Representative Greer plans to engage further with EU counterparts.
Japan is in a delicate situation due to upcoming upper house elections, potentially complicating negotiations during this period.
The employment report shows promising figures, forecasting accelerated activities leading up to Labor Day in September. Currently, real interest rates are notably high, influencing economic activity.
Despite the Treasury Secretary’s remarks, the lack of promising details concerning the EU lessens immediate optimism for the crypto market.
