Bitcoin News Today: Bitcoin, Ether Volatile as Dollar Tops 100 and Yen Hits 4-Month Low

Bitcoin and Ether began August with heightened volatility as the U.S. dollar surged to a level above 100 on the DXY index, its highest since late May. The yen also fell to a four-month low against the dollar amid growing concerns over inflation triggered by newly announced U.S. tariffs. Major cryptocurrencies, including BTC and ETH, experienced mixed trading action, with Bitcoin briefly dipping below $115,000 before rebounding to around $115,900, while Ether mirrored its movements, stabilizing near $3,690 after an early drop to $3,616 [1].

The turbulence was driven by President Donald Trump’s sweeping tariff announcements, which are expected to intensify inflationary pressures. Robin Brooks, a senior fellow at the Brookings Institution, noted that the delayed effects of tariffs are now manifesting, with rising inflationary signals evident in recent economic data [1]. The U.S. core PCE price index, a key inflation indicator, rose to 2.8% year-over-year in June, matching its highest level since February [1]. This development complicates the Federal Reserve’s ability to cut interest rates as swiftly as desired, especially after the central bank held rates steady at 4.25% in its most recent meeting and signaled caution about further reductions in the near term.

The shifting expectations for monetary policy are reflected in the CME FedWatch Tool, which currently gives a 41% probability of a September rate cut—down from 58% a week ago and over 75% a month ago. Matt Mena, a crypto research strategist at 21Shares, emphasized that the Fed’s decision to maintain rates and the central bank’s insistence on “greater confidence” in disinflation have tempered market optimism [1].

With the yen sliding past 150.50 per dollar following cautious remarks from Japanese central bank Governor Kazuo Ueda, the focus has now shifted to Friday’s U.S. nonfarm payrolls report. The data is expected to provide crucial insight into the economy’s health and whether the Fed will feel comfortable initiating rate cuts. For the crypto market, the release could determine the trajectory of Bitcoin and other digital assets, which have historically tracked global liquidity with a short lag. If the payrolls data signals a cooling economy and a subsequent Fed pivot, further gains for Bitcoin, including a potential push toward $150,000 and $200,000, could be on the horizon [1].

Source: [1] [Bitcoin, Ether Start August on a Shaky Note as Dollar Index Tops 100; Yen Hits 4-Month Low Ahead of Nonfarm Payrolls](https://www.coindesk.com/markets/2025/08/01/bitcoin-ether-start-august-on-a-shaky-note-as-dollar-index-tops-100-yen-hits-4-month-low-ahead-of-nonfarm-payrolls)