Bitcoin Slips as Tariff Worries and Diminished Rate Cut Hopes Weigh on Markets

Investing.com— Bitcoin steadied on Friday after sharply pulling back from recent highs, as traders grew cautious ahead of U.S. President Donald Trump’s expected rollout of new trade tariffs. Diminished expectations for near-term interest rate cuts also added pressure.

The broader cryptocurrency market saw declines, despite U.S. lawmakers preparing for a “Crypto Week” aimed at advancing new regulatory proposals.

Bitcoin, the world’s largest cryptocurrency, was down 0.2% at $109,112.70 by 01:15 ET (05:15 GMT), after briefly hitting $110,500 in overnight trading. Earlier gains had been fueled by renewed optimism over U.S.-China trade progress, helping Bitcoin break above its recent $103,000 to $108,000 trading range seen over the past month.

Despite Friday’s pullback, Bitcoin remained up 1.6% for the week, marking its second consecutive weekly gain.

However, market sentiment turned cautious as concerns resurfaced over elevated U.S. tariffs and the fading likelihood of imminent rate cuts. Investor nerves were also rattled by the recent passage of Trump’s so-called “big beautiful bill,” which is expected to drive up government debt in the coming years.

Trading activity is likely to remain subdued due to the U.S. Independence Day holiday on Friday.

Bitcoin Retreats from Highs as Tariff Plans Take Shape

Bitcoin gave up its Thursday gains after President Trump announced he would begin notifying key global trading partners of planned tariffs starting Friday. According to Trump, 10 to 12 countries will receive letters, with the proposed tariffs ranging between 10% and 20%, and in some cases, as high as 60% to 70%. The new trade measures are scheduled to take effect on August 1.

Tariff Worries Mount as Fed Signals Caution; Crypto Market Pulls Back

President Trump’s recent comments intensified fears over the potential economic fallout from his proposed tariffs, which could significantly disrupt global trade flows.

The uncertainty surrounding Trump’s trade measures has also become a key concern for the Federal Reserve. Chair Jerome Powell cited the potential inflationary impact of the tariffs as a major reason for holding interest rates steady.

Adding to the pressure, stronger-than-expected U.S. nonfarm payrolls data released on Thursday led markets to sharply scale back expectations for a July rate cut. Bets on a September rate reduction were also trimmed.

Higher-for-longer interest rates are generally unfavorable for cryptocurrencies, as they tighten liquidity and reduce the capital available for investment in riskier assets like crypto.

Altcoins Slip as ‘Crypto Week’ Fails to Boost Sentiment

Cryptocurrency markets declined broadly on Friday, with the announcement of an upcoming U.S. “Crypto Week” failing to spark investor enthusiasm.

On Thursday, members of the House of Representatives announced that the week of July 14 will be designated “Crypto Week,” during which lawmakers will advance at least three major crypto-related bills.

Among them is the recently approved GENIUS Act, which establishes a regulatory framework for stablecoins and is set to face a final House vote. Also on the agenda are the CLARITY Act and the Anti-CBDC Surveillance State Act.

“House Republicans are taking decisive steps to deliver the full scope of President Trump’s digital assets and cryptocurrency agenda,” House Speaker Mike Johnson said in a statement Thursday.

However, this generated little immediate excitement in crypto prices. The second-ranking crypto asset, Ether, decreased by 0.5% to $2,576.27. At the same time, XRP dropped by 1.2%, reaching $2.2430. XRP found minimal support from news that its issuer, Ripple, was pursuing a banking license in the U.S.

Solana and Cardano experienced declines ranging from 1.7% to 2%.

Dogecoin, among meme tokens, dropped by 2.5%, and $TRUMP decreased by 1.6%.

 

 

 

 

 

 

 

 

 

 

 

Disclaimer and Risk Warning
CoinWack does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. CoinWack should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.