Bitcoin Price Today: Drops to $84k Amid Uncertainty Over Interest Rates and Tariffs
On Friday, Bitcoin experienced a slight decline, following the broader downturn in risk-driven assets. Uncertainty surrounding U.S. interest rates and potential increases in trade tariffs have kept traders cautious in the crypto market.
Other cryptocurrencies also saw declines. XRP, despite a partial rebound after the Securities and Exchange Commission (SEC) dropped its case against Ripple, lost some of its recent gains. Ethereum, the world's second-largest cryptocurrency, fell below key levels after a brief recovery earlier in the week.
Although Bitcoin and other cryptocurrencies saw some relief this week, they remain significantly below their early 2025 levels. This is due to a decline in risk appetite amid growing economic uncertainty. Even measures supporting cryptocurrencies proposed by U.S. President Donald Trump failed to generate significant enthusiasm among investors.
The world's largest cryptocurrency fell by 1.7%, reaching $84,424.5 by 01:32 ET (05:32 GMT).
Bitcoin Under Pressure Due to Rate and Tariff Uncertainty
The losses in Bitcoin and other cryptocurrencies are largely linked to the broader decline on Wall Street, where investors remain cautious.
Traders have scaled back bets on potential interest rate cuts by the Federal Reserve (Fed) in the near term. This follows the Fed's decision to keep rates unchanged this week and its indication of heightened uncertainty in the U.S. economy.
The Fed forecasts higher inflation and slower economic growth in 2025, while also noting the unclear consequences of Trump's trade policies.
In March, Trump repeatedly shifted his stance on imposing tariffs against Canada and Mexico but continues to threaten reciprocal tariffs for major trading partners by early April.
The president has also repeatedly called on the Fed to lower interest rates, though the central bank has no intention of doing so in the near term. The dollar strengthened on Thursday and Friday, recovering losses incurred after the Fed's decision on Wednesday.
Increased economic uncertainty is putting pressure on cryptocurrencies, as speculative assets typically underperform during periods of economic instability.
Crypto Prices Today: Altcoins Temporarily Rebound but Follow Bitcoin Downward
Other cryptocurrencies also declined on Friday after a brief recovery earlier in the week. Ethereum dropped below $2,000, nearing its 2021 lows.
XRP was one of the best performers this week, gaining 0.8%. However, the cryptocurrency remains well below its nearly two-week high reached after the SEC closed its case against Ripple.
The SEC's decision was expected, as Trump appointed new leaders to the agency who are more favorable toward cryptocurrencies. Earlier, the SEC also dropped cases against exchanges Coinbase and Kraken.
Other altcoins also declined on Friday, ending the week with modest results. Cardano fell by 1.6%, while Solana and Polygon lost 4.5% and 3.1%, respectively.
Among meme tokens, Dogecoin dropped by 2.9%, and $TRUMP fell by 3%