Over the weekend, cryptocurrency markets experienced a sharp downturn, with Bitcoin retreating to a support level of $112,000 as renewed economic uncertainty weighed on risk appetite. The sell-off was triggered by President Trump's announcement of new "reciprocal" tariffs and a disappointing U.S. jobs report from the previous week.
The new import duties are scheduled to take effect on August 7, while trade talks with China are ongoing ahead of a critical review on August 12. These events could introduce further volatility into global markets.
This week, investors will be closely monitoring several key economic indicators. On Monday, the S&P Global Services PMI will provide insight into the health of the services sector, followed by the ISM non-manufacturing PMI on Tuesday, which may offer more signs of an economic slowdown. Additionally, Fed Chair Jerome Powell is scheduled to speak, with investors eager for any hints about potential future interest rate cuts following the weak jobs report. Jobless claims data will also be released on Thursday, which could signal further labor market weakness.
Despite the broader market dip, the crypto market has shown some signs of a rebound during the Monday morning Asian trading session, with total market capitalization recovering to $3.8 trillion. Bitcoin briefly dropped below $112,000 but has since recovered to around $114,500. Ethereum also bottomed out near $3,400 before reclaiming its range-bound channel. The general outlook remains cautious, as August has historically been a bearish month for Bitcoin.
August 2025, Cryptoniteuae