BloFin: Tariffs are fueling US inflation and increasing ETH volatility

Researchers at BloFin published a weekly report highlighting that current economic conditions are creating additional pressure on American consumers. According to analysts, tariffs are costing US households between $1,600 and $2,600 in additional income, which could partially offset the benefits of potential stimulus payments. Experts note that tariffs effectively act as a hidden tax, affecting the cost of imports and exacerbating inflationary pressures.

The Impact of Tariffs on Inflation

According to estimates from the Federal Reserve Bank of St. Louis, tariffs imposed between June and August 2025 added approximately 0.5 percentage points to the annualized PCE (Consumer Expenditures Index) inflation rate. BloFin's reports also show that durable goods inflation has accelerated significantly. At the same time, analysts are recording increasing synchronicity between the S&P 500 and VIX futures, indicating declining investor confidence and a more vulnerable market.

Tension in the Crypto Market

The crypto market also remains tense. The ETH DVOL (Ethereum Volatility) index rose to 75.32%, driven by ongoing sell-offs and a deteriorating macroeconomic environment. Meanwhile, ETH's 30-day realized volatility reached 94.5% of its historical range, the highest since January 2023.

ETH's implied forward yield fell to 3.67% per annum, lower than US Treasury yields. Meanwhile, Bitcoin (BTC) appears more stable, although its implied forward yield is 5.28% per annum.

The Impact of Distribution Plans

BloFin separately assessed the impact of the $2,000 payment plan for all Americans. Analysts believe that in the short term, this could support demand and resemble the impact of the pandemic payments. However, the Tax Foundation and Brookings warn that the program could increase the national debt to $600 billion and raise inflation by 1-3 percentage points. Furthermore, implementation of this plan requires Congressional approval, and the announced "trillion-dollar" funding remains uncertain.

Therefore, current economic conditions and new initiatives could have a significant impact on both traditional financial markets and the cryptocurrency sector.