Investing.com-- Bitcoin steadied on Friday after sharply reversing recent gains as traders braced for the rollout of U.S. President Donald Trump’s trade tariffs in the coming days, while waning rate cut bets also weighed.
Broader crypto prices fell, even as U.S. lawmakers outlined an upcoming “Crypto Week” that will see them consider a slew of crypto regulatory measures.
The world’s largest crypto fell 0.9% to $108,933.4 by 05:22 ET (09:22 GMT) after rising as high as $110,500 in overnight trade. Bitcoin’s initial gains were driven by optimism over more trade progress between the U.S. and China, which also helped the crypto break out of a $103,000 to $108,000 trading range seen over the past month.
Bitcoin was on track to rise for the week, its second straight week of gains.
But this optimism ran dry amid persistent concerns over high U.S. tariffs and no near-term interest rate cuts. Markets were also on edge following the passage of Trump’s signature policy bill, which is forecast to increase government debt in the coming years.
Crypto trading volumes are expected to be limited on account of the U.S. Independence Day holiday on Friday.
Bitcoin curbs gains as rate, tariff jitters persist
Bitcoin came off its Thursday highs after Trump said he will begin sending letters to major economies outlining his trade tariffs by as soon as Friday.
Trump said about 10-12 countries will receive the letters on Friday, with his tariffs to range from 10% to 20% and 60% to 70%. The tariffs will take effect from August 1, the president said.
Trump’s comments ramped up concerns over the economic impact of his planned tariffs, which stand to greatly disrupt global trade.
Uncertainty over Trump’s tariffs was also cited as a major motivator by the Federal Reserve to keep interest rates steady, with Chair Jerome Powell warning on the potentially inflationary impacts of the duties.
Stronger-than-expected nonfarm payrolls data released on Thursday saw markets sharply pare bets that the Fed will cut interest rates by as soon as July, while markets also trimmed expectations of easing in September.
Higher-for-longer interest rates tend to pressure crypto assets, given that they limit the liquidity available to be deployed into the sector.
Crypto price today: Altcoins fall, ‘Crypto Week’ draws little price action
Broader crypto prices retreated on Friday, with the announcement of a U.S. “Crypto Week” garnering little immediate traction.
Members of the House of Representatives said on Thursday that the week of July 14 will be “Crypto Week,” where the legislative body will seek to move forward at least three crypto regulatory acts.
The recently-approved GENIUS Act, which outlines a regulatory framework for stablecoins, will be considered for a final vote in the House, while the CLARITY Act and the Anti-CBDC Surveillance State Act will also be considered by lawmakers.
“House Republicans are taking decisive steps to deliver the full scope of President Trump’s digital assets and cryptocurrency agenda,” Speaker Mike Johnson said in a statement on Thursday.
(Scott Kanowsky contributed reporting.)