Key Takeaways
- Bitcoin dropped to $118K amid profit-taking and fading rate-cut optimism
- July PPI surged 0.9%, tempering hopes for early Fed rate cuts
- Gold edged lower and Bitcoin pulled back from record highs as yields climbed
- Investors are now focused on upcoming U.S.–Russia talks as uncertainty persists over a potential Ukraine ceasefire
Geopolitics & Market Sentiment
Markets edged lower on August 15 after stronger-than-expected U.S. inflation data pushed investors to reassess the possibility of near-term interest rate cuts.
The Producer Price Index for July rose 0.9% from the previous month, significantly above forecasts, suggesting that pricing pressures at the wholesale level remain more persistent than anticipated.
The report triggered a shift in market sentiment, with traders reevaluating the likelihood of multiple rate cuts this year, as U.S. Treasury yields ticked higher and the dollar regained strength.
Additionally, geopolitical developments continued to shape investor mood. President Trump suggested Ukraine may need to give up land as part of a future peace deal with Russia, introducing new uncertainty ahead of his expected meeting with President Putin.
Meanwhile, the extension of a tariff truce between the United States and China paved the way for renewed trade talks in September, raising hopes for some stability in global supply chains.
In digital asset markets, cryptocurrencies gave back earlier gains following their recent rally. Bitcoin retreated to around $117,000, down from its record highs above $124,000, as investors took profits amid rising rate-cut uncertainty. Ethereum fell as well, trading nearer to $4,575 after hitting multiyear highs. Analysts attributed the pullback to macro-driven caution and speculative positioning, noting that open interest across altcoins has remained elevated, which is a sign of heightened sensitivity to volatility.
Despite the pullback, institutional engagement in crypto remained active. Bullish, the crypto exchange backed by Peter Thiel, moderated after its high-profile listing. Separately, Dunamu, the parent of Upbit, announced plans to launch a regulated crypto exchange in Vietnam.
Meanwhile, traditional markets delivered a mixed performance. The S&P 500 and Nasdaq, while setting record closes earlier in the week, dipped under the weight of recalibrated Fed expectations.
Similarly, Japan’s Nikkei 225 dipped after surging past 43,000 on robust earnings in technology and industrials.
Gold softened to approximately $3,335 an ounce, weighed down by renewed momentum in interest rates, while the U.S. Dollar Index rose to 98.20, regaining strength amid the shifting outlook.
Global Indices
- S&P 500 Index (SPX): 6,465.00 (+0.30%)
- Dow Jones Industrial Average (DJI): 44,922.27 (+1.04%)
- Nasdaq Composite Index (IXIC): 21,713.14 (+0.14%)
- Nikkei 225 Futures (NK225): 42,770.00 (+0.53%)
- Euronext 100 (N100): 1,597.29 (+0.64%)
- FTSE 100 (UKX): 9,145.40 (−0.28%)
Cryptocurrencies
- Bitcoin (BTCUSD): 118,320 (−5.02%)
- Ethereum (ETHUSDT): 4,525 (−4.70%)
- Binance Coin (BNBUSDT): 844.17 (+1.41%)
- Solana (SOLUSDT): 190.01 (+4.81%)
- BTC Dominance: 59.58% (−0.18%)
Major Stocks
- Nvidia (NVDA): 181.59 (+0.24%)
- Tesla (TSLA): 339.38 (−0.43%)
- Microsoft (MSFT): 522.58 (+0.64%)
- Meta Platforms (META): 780.08 (+0.26%)
- Apple (AAPL): 233.33 (-1.20%)
- Amazon (AMZN): 230.56 (+2.40%)
Commodities
- Silver (XAGUSD): 38.076 (+0.57%)
- Gold (XAUUSD): 3,335.28 (−0.21%)
- WTI Crude Oil (USOIL): 63.73 (−0.17%)
- Brent Crude (BRENT): 68.10 (−3.68%)
Forex
- U.S. Dollar Index (DXY): 97.70 (+0.45%)
- EUR/USD: 1.1602 (+0.03%)
- GBP/USD: 1.35695 (+0.03%)
- USD/JPY: 147.36 (+0.01%)
