President Donald Trump’s decision to impose an additional 100% tariff on Chinese goods, on top of the existing 30%, effective November 1 or sooner, sparked a significant downturn in the crypto market, according to CryptoPotato_News. Bitcoin (BTC) fell 10% to $112,709, while Ethereum (ETH), Solana (SOL), and XRP dropped 15%–30%, resulting in $19.16 in liquidated leveraged longs, the largest such event in crypto history, per CoinDesk. The ongoing U.S. government shutdown has restricted economic data, increasing uncertainty. X posts from @Ashcryptoreal describe the crash as 20x worse than the 2020 COVID event, per. Markets recovered on Monday, with BTC approaching $116,000 and ETH at $4,200, driven by efforts to de-escalate the U.S.-China situation, according to the Kobeissi Letter. Persistent trade tensions could fuel further volatility, per.
Federal Reserve Chair Jerome Powell’s speech on Tuesday at Jackson Hole may provide clues about September’s rate cut plans, though limited data due to the shutdown may obscure signals, per. On Wednesday, the New York Fed Manufacturing Index and Thursday’s Philly Fed Manufacturing Index will assess business conditions in economically challenged New York and California, per MarketWatch. Weak data could signal broader U.S. economic risks, per. Thursday’s NAHB Housing Market Index and Q3 earnings from major banks like JPMorgan, Citigroup, and BlackRock will add context. A hawkish Powell could push BTC below $112,000, while dovish remarks may drive it toward $120,000, per Techopedia. CME FedWatch indicates an 85% chance of a 25 bps rate cut, per.
Monday’s OPEC Monthly Report could impact oil prices and inflation expectations, indirectly affecting crypto as a risk asset, per. The Q3 earnings season, starting with major banks, may reflect economic resilience amid tariff concerns. Bitcoin ETFs and ETH ETFs experienced August outflows after July’s highs, per. The crypto market cap rebounded to $4T from $3.3T, but leverage resets underscore market fragility, per. X posts from @KobeissiLetter note that limited data may keep markets range-bound, per. Strong earnings could lift BTC to $120,000, while disappointments may deepen corrections, per TradingView.
Track ETF flows on SoSoValue and Fed updates via federalreserve.gov. Set BTC stop-losses at $112,000 and ETH at $4,000, or diversify into USDC, per TradingView. Follow @TheBlock__ on X for real-time updates. Favorable catalysts could reignite a bull run, but tariff and economic data risks remain, per.
