- The U.S. government announced new tariffs affecting imports from over 60 countries.
- Bitcoin dropped 2.1% to about $115,500, with other major cryptocurrencies also declining.
- The July jobs report showed slower job growth than expected, and past job gains were revised downward.
- The likelihood of a Federal Reserve interest rate cut in September rose sharply to 78%.
- Financial markets, including stocks and crypto, reacted negatively to both the tariffs and labor market signals.
The price of Bitcoin fell on Friday as investors reacted to the latest round of U.S. tariffs and a weaker-than-expected jobs report. The new tariffs, revealed by the White House on Thursday, will impact imports from more than 60 countries, starting August 7.
Bitcoin’s price dropped 2.1% to around $115,500 according to CoinGecko. Ethereum slid 3.8% to $3,630, while XRP and Solana also posted declines. U.S. stock markets mirrored these losses, with the S&P 500 down 1.5% and the Nasdaq off by 2%. The Dow Jones Industrial Average fell more than 570 points.
The administration increased tariffs on Canadian imports to 35% but did not apply these to goods covered by the trade pact with Mexico and Canada. Brazil faces the steepest increase at 50%. In an executive order, officials stated the U.S. is open to further negotiations. A separate agreement between the U.S. and China is set to expire August 12, though U.S. Treasury Secretary Scott Bessent told CNBC that both countries could reach a deal after new trade talks.
According to the July U.S. jobs report, the economy added 73,000 jobs, while the unemployment rate remained at 4.2%. The government revised previous figures, removing 258,000 jobs from May and June. Initial estimates showed 144,000 and 147,000 jobs added in those months, but updates included only 19,000 and 14,000 jobs respectively, as noted by Trading Economics.
Officials at the Federal Reserve decided to maintain the interest rate target at 4.25% to 4.5%. However, the chance of a rate cut at the next meeting increased to 78%, up from 37% the previous day, according to the CME FedWatch tool. Matt Mena from 21Shares told Decrypt: “Now that rate cuts are back on the table for the next Fed meeting, liquidity conditions may open up again—a powerful tailwind for risk assets like crypto. If a Fed cut becomes all but guaranteed, Bitcoin could quickly propel toward $125K.”
The White House had eased trade tensions with many countries earlier through temporary extensions, but attention has returned as new tariffs take effect and uncertainty remains over negotiations with China.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- AI-Generated npm Package Conceals Solana Crypto Wallet Drainer
- Bitcoin Slips Below $115K, Dogecoin and Cardano Drop 8%
- Visa Expands Stablecoin Platform to Support EURC, Stellar, Avalanche
- Ray Dalio Sells Last Bridgewater Stake, Brunei Buys 20% Share
- Visa Expands Stablecoin Support, Adds EURC, PYUSD, and USDG
