Major cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), began August with significant volatility as the dollar strengthened due to new U.S. tariffs announced by President Trump. Bitcoin experienced price fluctuations, dropping to around $114,290 before recovering to approximately $115,900. Ether mirrored this movement, initially falling to $3,616 before rebounding to about $3,690. The dollar index (DXY) rose above 100 for the first time since late May, reflecting growing inflation fears linked to these tariffs. Influential economic data, including the U.S. nonfarm payrolls report, is anticipated to provide further insights into the market. Additionally, the Japanese yen fell to its lowest level in four months against the dollar, reflecting caution from the Bank of Japan regarding interest rate hikes. Experts warn that the upcoming labor data could greatly impact both cryptocurrency prices and Federal Reserve monetary policy, especially if a cooling economy prompts a pivot in Fed actions. Overall, the market is closely monitoring these developments for potential shifts in risk sentiment.

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