Bitcoin saw renewed selling pressure on Friday, sliding 1.7% to $84,424.5 as 01:32 ET (05:32 GMT). The broader cryptocurrency market followed suit, weighed down by rising concerns over Federal Reserve interest rate policies and U.S. trade tariffs.
Despite a brief recovery earlier this week, Bitcoin and other digital assets remain under pressure, struggling to regain momentum lost amid economic turbulence. XRP gave up some of its earlier gains after the SEC dropped its case against Ripple, while Ethereum slipped back below $2,000, erasing its midweek rebound.
Crypto markets have been on edge in 2025, facing weak risk sentiment, inflationary concerns, and shifting regulatory landscapes. Even pro-crypto policies from U.S. President Donald Trump have failed to spark sustained bullish momentum.
Rate Hikes and Trade Tariffs Pressure Crypto
Market sentiment toward risk assetsâincluding cryptoâhas soured following the Federal Reserve’s latest stance on interest rates. The Fed kept rates steady this week but projected higher inflation and sluggish growth in 2025, adding to investor unease.
- Traders have scaled back expectations of a Fed rate cut, given the central bankâs cautious approach.
- The U.S. dollar strengthened on Thursday and Friday, reclaiming losses from the immediate post-Fed reaction.
- Economic uncertainty intensified as Trump continued his reciprocal tariff threats, particularly against major trading partners, while wavering on policies toward Canada and Mexico.
- Trump has urged the Fed to cut rates aggressively, but the central bank has signaled little inclination to do so in the near term.
With the Fed holding firm and trade tensions rising, Bitcoin and other speculative assets have struggled to find a clear upside catalyst.
Altcoins Lose Momentum After Brief Rally
The wider crypto market mirrored Bitcoinâs losses, with major altcoins retreating after a short-lived rebound.
- Ethereum (ETH): Fell below $2,000, approaching multi-year lows last seen in 2021.
- XRP: Ended the week 0.8% higher, still trading well below its two-week peak following the SECâs case dismissal against Ripple.
- Cardano (ADA): Dropped 1.6%, while Solana (SOL) and Polygon (MATIC) fell 4.5% and 3.1%, respectively.
- Meme Coins: Dogecoin (DOGE) slipped 2.9%, while $TRUMP token lost 3%.
Although regulatory relief from the SEC benefitted XRP, the overall lack of enthusiasm in crypto markets reflects broader macroeconomic challenges. Until inflation concerns ease or monetary policy shifts decisively, volatility is expected to persist across digital assets.