- Bitcoin fell to $96,723.5, marking its second consecutive weekly loss due to macroeconomic pressures and Trump’s new tariffs.
- Altcoins like Ether, XRP, and Dogecoin also saw sharp declines amid a broader market downturn.
Bitcoin struggled on Friday, heading for its second straight weekly decline. The leading cryptocurrency fell 1.6% to $96,723.5 as of early morning trading. It has lost nearly 3% this week after dropping 4% last week.
Bitcoin Faces Decline Fueled by Tariffs
Market sentiment turned bearish on February 1 after former U.S. President Donald Trump announced new tariffs. The move triggered broader concerns over global trade and led investors to adopt a risk-off approach. Stocks fell, and Bitcoin followed suit, struggling to regain momentum.
The lack of strong catalysts to push prices higher added to the uncertainty. Traders remained cautious, with Bitcoin stuck in a narrow trading range.
Macroeconomic Uncertainty Weighs on Crypto
Bitcoin’s weakness also stems from concerns over U.S. Federal Reserve policy and global economic growth. Investors are awaiting key economic data, including the U.S. nonfarm payrolls report, which could influence interest rate expectations.
Despite the recent drop, Bitcoin remains up significantly over the past year. Growing mainstream adoption and expectations of favorable crypto regulations under Trump’s potential return have helped support prices. However, analysts warn that volatility will likely continue in the near term.
Franklin Templeton Eyes Crypto ETF
Institutional interest in cryptocurrencies remains strong. Franklin Templeton has filed for a crypto index ETF with the U.S. Securities and Exchange Commission (SEC). The fund aims to provide exposure to Bitcoin and Ether, with the possibility of adding more assets later.
The SEC’s decision on the ETF will play a crucial role in shaping the crypto investment landscape. Several asset managers are also seeking approval for similar funds, including those linked to Solana and XRP.
Altcoins Suffer Bigger Losses
Bitcoin’s decline dragged the broader crypto market lower. Ether fell 5.4% to $2,677, marking a 14% weekly drop. XRP tumbled 7.1% to $2.2903 and was set for a 20% weekly loss.
Solana, Polygon, and Cardano also took hits, losing between 6% and 8%. Meme coins struggled as well, with Dogecoin falling 5.8%.
What’s Next for Bitcoin?
Bitcoin remains under pressure, and macroeconomic concerns continue to dominate sentiment. The upcoming jobs report and Fed outlook will be key factors in determining its next move.
For now, traders remain cautious, watching for signs of a potential recovery—or more downside ahead.
