Inflation, Tariffs and Nvidia GPUs Roil Crypto Markets
U.S. markets responded to fresh inflation data, renewed tariffs and Nvidia’s GPU export approval, creating uncertainty for the crypto market. June’s Consumer Price Index rose 0.3% month-on-month and 2.7% year-on-year, with core inflation at 2.9%, prompting fears of tighter Fed policy. Meanwhile, President Biden’s announcement of 30% tariffs on EU and Mexico imports from August 1 may further pressure prices. Equity indices diverged: the Dow slipped 0.5%, the S&P 500 eased off record highs, and the Nasdaq gained 0.5% on Nvidia’s green light to ship advanced H20 GPUs to China. Mixed bank earnings—from Wells Fargo’s guidance cut to modest gains at JPMorgan, BlackRock and Citigroup—added to market volatility. Crypto traders should track ongoing CPI trends, Fed signals and trade developments for clues on liquidity and risk appetite. While higher inflation and tariffs may weigh on risk assets, the crypto market could benefit from sustained demand for AI-driven hardware and Nvidia’s China sales in the medium term.
Neutral
The combined inflation surge and new tariffs increase downside risk for crypto by raising prospects of tighter monetary policy and reduced liquidity. Conversely, Nvidia’s approval to export GPUs to China and sustained AI hardware demand support risk assets and digital currencies. These offsetting forces suggest a neutral impact: short-term volatility may rise, but medium-term sentiment could stabilize if Nvidia-related demand bolsters the crypto market.