Bitcoin News Today: Crypto Markets Face Turbulence Amid Fed Signals and Tariff Hikes

Generated by AI AgentCoin World
Monday, Aug 18, 2025 7:07 am ET2min read
Aime RobotAime Summary

- Crypto markets face heightened volatility as Fed signals and 17% tariffs amplify inflation risks, delaying rate cuts and prolonging uncertainty.

- Key Fed speakers including Lisa Cook and Jerome Powell's Jackson Hole speech will shape crypto price swings through policy clues.

- Institutional investors adopt 50% large-cap crypto allocations while DeFi projects like Starknet introduce BTC-STRK tokenization features.

- U.S. GENIUS Act and EU MiCAR regulations unlock $12.5T retirement assets, boosting crypto legitimacy amid strategic dollar-cost averaging trends.

The cryptocurrency markets are entering a period of intense volatility driven by a packed week of macroeconomic events and key Federal Reserve commentary. The week begins with

hovering around $15,000, a level that remains sensitive given the over $1 billion in liquidations recorded just a week earlier following poor PPI data. Analysts are now watching closely as the broader market braces for another round of inflation, employment, and rate decision signals, which are expected to amplify price swings across major crypto assets [1].

A notable macroeconomic development this week is the full implementation of new tariffs, which has pushed effective customs duty rates to 17%. This is expected to intensify inflationary pressures, which could delay further Fed rate cuts and prolong market uncertainty. The upcoming employment and inflation reports before the Fed's next decision in September will be key to shaping the trajectory of both U.S. monetary policy and global asset markets, including crypto [1].

The week’s calendar features several high-impact Fed speakers, including Lisa Cook, Christopher Waller, and Raphael Bostic, with Lisa Cook’s comments on Tuesday being particularly significant. She is one of the two Fed members who advocated for a rate cut in July, and her post-PPI stance could offer insight into whether the central bank is leaning toward easing. In addition, the Fed minutes to be released on Wednesday will be scrutinized for insights into the central bank’s internal debate over inflation, tariffs, and rate policy [1].

The Jackson Hole Symposium, running through August 23, is also a major event, with Federal Reserve Chair Jerome Powell set to deliver a keynote speech. This is a high-stakes moment for crypto investors, given the historical sensitivity of digital assets to Fed signals. Any indication of prolonged high rates or hawkish policy could trigger a sharp correction in crypto prices, while hints of easing could spark a short-term rebound [1].

Meanwhile, the DeFi and blockchain ecosystems are also active. The

is expected to make an announcement on August 19, while Flare FAssets V1.2 is set to launch on August 20. Starknet’s SNIP-31 vote, which allows users to lock tokenized BTC for STRK rewards, is another development to watch, potentially influencing both and Bitcoin price dynamics [1].

The market remains in a state of anticipation. Institutional investors are adjusting their risk exposure, with many adopting a 50% allocation to large-cap cryptos like Bitcoin and Ethereum, while maintaining 20% in mid-cap altcoins and 20% in stablecoins. Security measures have also been ramped up, with over 95% of institutional holdings stored in hardware wallets and subject to frequent audits [3].

Regulatory clarity is also helping to stabilize sentiment. The U.S. has seen the passage of the GENIUS Act and the repeal of SAB 121, unlocking $12.5 trillion in retirement assets for crypto investments. In the EU, the MiCAR framework is providing a standardized regulatory environment that supports institutional entry and tokenized asset growth. These developments are reinforcing crypto’s growing legitimacy and broadening its appeal to a wider investor base [3].

Long-term investors are beginning to see value in the current price environment, with dollar-cost averaging strategies being recommended for Bitcoin and Ethereum. For altcoin investors, projects with clear real-world applications—such as cross-border payment platforms—are being prioritized. As the ecosystem continues to mature, crypto is increasingly viewed as a strategic asset class for those willing to navigate its inherent volatility with patience and discipline [3].

Source: [1] COINTURK NEWS, [Upcoming Week Promises Major Turbulence in Crypto Markets](https://coinmarketcap.com/community/articles/68a3067abb247e1a57fb84e3/)

[2] BraveNewCoin, [Bitcoin Bears Target $113K While Bulls Await Fresh Catalyst](https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-bears-target-113k-while-bulls-await-fresh-catalyst)

[3] SSBCrack, [Crypto Market Volatility in Q3 2025: Strategic Entry Points Amid Institutional Recalibration](https://news.ssbcrack.com/crypto-market-volatility-in-q3-2025-strategic-entry-points-amid-institutional-recalibration/)