Bitcoin exchange rate today: falling below $86 thousand amid Trump's new duties and expectation of PCE data
Bitcoin is declining on Friday amid a general outflow of risk assets due to escalating trade tensions ahead of retaliatory US duties. Investors are also cautiously awaiting key inflation data that could influence the Federal Reserve's future policy.
The largest cryptocurrency fell 1.6 percent to $85,910.50 (as of 05:23 GMT).
Trump's new auto duties intensify trade war
U.S. President Donald Trump on Wednesday announced a 25% duty on all imported cars and auto parts starting April 2.
In response, Canadian Prime Minister Mark Carney said the longstanding trade relationship with the US was “over” and called for a full renegotiation of agreements between the countries. He promised retaliatory measures if Trump implements the new tariffs.
In addition, the Trump administration is preparing global retaliatory duties against countries with the largest trade imbalance with the US.
These developments heightened investor fears of a full-blown trade war, leading to sell-offs in global markets.
U.S. indexes closed in the negative on Thursday.
Asian bourses also showed declines early Friday.
In such conditions, investors often move away from volatile assets (including cryptocurrencies) into defensive assets such as gold. The price of gold hit an all-time high on Friday.
PCE data: what's in store for the Fed Funds rate?
Market caution is also due to the publication of the PCE index, a key measure of inflation that influences the Fed's rate decision.
At the last meeting, the Fed left rates at 4.25-4.5%, but allowed two cuts before the end of the year. However, Trump's new duties could make it harder to fight inflation.
Altcoin exchange rate: Ethereum, XRP and meme tokens in the red zone
The fall has affected altcoins as well:
- Ethereum (-4.8%) - $1926.96
- XRP (-4.2%) - $2,2629
- Solana (-3%), Cardano (-3.5%), Polygon (-9%)
- Meme tokens: Dogecoin (-6.2%), $TRUMP (-8%)
The cryptocurrency market remains under pressure due to macroeconomic risks and tightening US trade policy.