Bitcoin Slips to $84K Amid Market Jitters Over Interest Rates and Trade Tariffs
Easy Trading Tips – Bitcoin experienced a slight downturn on Friday, mirroring losses in broader risk-sensitive assets as concerns over U.S. interest rates and escalating trade tariffs continued to dampen investor sentiment in the crypto market.
Other major cryptocurrencies also saw a pullback, with XRP surrendering some of its recent gains following the Securities and Exchange Commission’s decision to drop its case against Ripple. Ethereum, the second-largest cryptocurrency, dipped below key levels after a brief recovery earlier in the week.
Despite a momentary relief rally, Bitcoin and the broader crypto market have struggled in 2025, weighed down by economic uncertainty and a cautious risk environment. Even pro-crypto policies from U.S. President Donald Trump failed to spark significant optimism among investors.
As of 01:32 ET (05:32 GMT), Bitcoin had fallen 1.7% to $84,424.5.
Bitcoin Faces Pressure from Rate and Tariff Uncertainty
Bitcoin’s decline was largely in step with losses in Wall Street, as overall risk appetite remained subdued.
Investors have been reducing their expectations for interest rate cuts by the Federal Reserve in the near term, particularly after the central bank held rates steady this week and expressed concerns over economic growth and inflation in 2025. The Fed also highlighted uncertainty regarding the impact of Trump’s proposed trade tariffs.
Trump’s shifting stance on tariffs, especially his back-and-forth approach to potential levies on Canada and Mexico, has created further uncertainty. His ongoing threats to impose reciprocal tariffs on major trading partners by early April have only added to market apprehensions.
Meanwhile, Trump has continued to pressure the Fed for rate cuts, but the central bank has remained firm in its stance. In response, the U.S. dollar rebounded on Thursday and Friday, erasing previous losses that followed the Fed’s latest policy decision.
Rising economic uncertainty has put speculative assets like cryptocurrencies under pressure, as investors tend to shy away from high-risk bets during times of economic stress.
Altcoins Follow Bitcoin’s Downtrend After Brief Rebound
The broader cryptocurrency market also retreated on Friday, following a short-lived recovery earlier in the week. Ethereum dropped back below $2,000, approaching levels last seen in 2021.
XRP managed to post a modest 0.8% weekly gain after the SEC’s case dismissal, though it remained well below the near two-week high it reached earlier in the week. The decision was widely expected, given Trump’s recent overhaul of SEC leadership with more crypto-friendly figures. The agency had previously dismissed cases against major exchanges Coinbase (NASDAQ:COIN) and Kraken.
Other altcoins struggled, with Cardano slipping 1.6%, Solana dropping 4.5%, and Polygon declining 3.1% on Friday.
Among meme coins, Dogecoin fell 2.9%, while $TRUMP slid 3%, reflecting the overall downturn in the digital asset space.
Market Outlook
With ongoing uncertainty around U.S. economic policy, interest rates, and trade tariffs, the crypto market remains volatile. While regulatory shifts and policy changes may bring some optimism, risk-averse sentiment continues to weigh heavily on digital assets. Investors will be closely watching developments in monetary policy and global trade dynamics in the coming weeks.