The S&P 500 fell on August 23 but posted a winning week at 7,711.76. Fed Chairman Kevin Warsh warned that inflation remains elevated despite recent policy moves. New tariffs threaten to reignite price pressures.
As of August 26, 2026, Bitcoin traded near $78,500βan 8% premium to early-August levels. Institutional investors view crypto as a hedge against tariff-driven inflation, mirroring behavior from the 2018β2019 trade-war period.
BlackRock captured 60% of Bitcoin and 78% of Ethereum ETF inflows on August 25 alone. Institutions are positioning defensively ahead of potential macro turbulence from tariff implementation next year.
If tariffs pass Congress and take effect January 1, 2027, supply-chain disruptions and higher consumer prices could follow. Crypto may see sustained institutional flows as inflation hedges deepen before and after implementation.
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