- Bitcoin dropped to $104,379 amid Trump’s tariff threats against BRICS nations and investor caution ahead of key U.S. inflation data.
- Meanwhile, El Salvador amended its Bitcoin law to secure a $1.4 billion IMF deal, while altcoins remained stagnant with mixed price movements.
Bitcoin’s price took another hit on Friday, dropping to $104,379 as investor sentiment turned cautious over renewed tariff threats from former U.S. President Donald Trump. The flagship cryptocurrency has been struggling to maintain momentum, bouncing between $100,000 and $105,000 throughout the week.
Trade War Fears Weigh on Bitcoin
Trump’s latest comments about imposing 100% tariffs on BRICS nations sparked fresh concerns in global markets. The move is seen as retaliation against the group’s push to reduce dependence on the U.S. dollar. Additionally, Trump has threatened 25% tariffs on Canada and Mexico, along with a 10% duty on Chinese goods starting this Saturday.
These escalating trade tensions have rattled the crypto market, as investors fear a global economic slowdown. While Trump has shown support for friendlier crypto regulations, these policies have so far failed to boost Bitcoin’s price in the face of broader market instability.
El Salvador Adjusts Bitcoin Law to Secure IMF Deal
Another major development in the crypto space this week was El Salvador’s decision to amend its Bitcoin law as part of a $1.4 billion IMF relief deal. While the country made history by adopting Bitcoin as legal tender in 2021, its economic impact has been limited.
The new amendment makes Bitcoin acceptance voluntary for businesses, addressing a key concern raised by the International Monetary Fund (IMF). This shift signals a more balanced approach to Bitcoin adoption, allowing the country to secure crucial financial aid while maintaining its Bitcoin-friendly stance.
Altcoins Remain Stagnant as PCE Data Looms
While Bitcoin struggles, altcoins have shown mixed performance.
- Ethereum (ETH) managed to rise 1.6% to $3,243.87, showing some resilience.
- XRP dropped 1% to $3.0866, mirroring Bitcoin’s decline.
- Dogecoin (DOGE) fell 1.2%, while Solana (SOL), Cardano (ADA), and Polygon (MATIC) traded flat.
- $TRUMP memecoin saw a significant 7.2% decline, now trading 60% below its post-launch peak.
Investors are also bracing for the release of the U.S. PCE price index data, the Federal Reserve’s preferred inflation gauge. Given the Fed’s recent stance on holding interest rates steady, the upcoming data could shape market expectations for future rate cuts or hikes.
Final Thoughts: What’s Next for Bitcoin?
With Trump’s trade war rhetoric escalating and inflation data on the horizon, Bitcoin faces a volatile road ahead. If tariffs disrupt global markets further, Bitcoin could either benefit as a hedge asset or suffer from lower investor confidence. Meanwhile, any signs of cooling inflation in the PCE report could provide the necessary catalyst for a Bitcoin rebound.
For now, Bitcoin’s key support level remains at $100,000, while resistance sits at $105,000. A break above or below this range could determine its next major move.
