Bitcoin prices fell further on Friday, reaching a low of $115,540.9 in early trading, completing a week of gradual falls. The largest cryptocurrency in the world is scheduled to close the week almost 2% down, pulled lower by increasing worries over US trade tariffs, a risk-averse Federal Reserve, and a risk-off mood across global markets.
Even a substantial Bitcoin buy by business giant MicroStrategy (NASDAQ: MSTR) was unable to shake off prices. Investors are now eagerly awaiting the next US nonfarm payrolls release for fresh cues on the economy and direction of interest rates.
Trump Tariffs Frighten Crypto Markets
Markets went risk-off following Thursday’s executive order by US President Donald Trump proposing new trade tariffs. The duties proposed on a series of US trade partners are to be effective in seven days. The timeline fell short of Trump’s August 1 deadline, adding to uncertainty.
Uncertainty increased after Washington made a number of last-minute trade agreements with international economies. Traders were cautious, not knowing how extensive or intense the ultimate tariff imposition was going to be. This uncertainty haze extended to crypto markets, and Bitcoin was the most affected.
Fed’s Attitude Contributes to Pressure
Earlier in the week, the Federal Reserve left interest rates unchanged. Policymakers indicated that they had to see the entire inflationary effect of Trump’s tariffs before acting. This “wait-and-watch” attitude created additional caution in financial markets.
High interest rates normally damage speculative assets such as Bitcoin. Since the Fed displayed little need to ease up on policy, crypto traders started to cut positions.
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MSTR Buy Fails to Lift Mood
MicroStrategy, the largest corporate Bitcoin holder, revealed a new Bitcoin buy this week. The firm also reported robust June-quarter results. Both, however, failed to galvanize either MSTR shares or the wider crypto marketplace.
The tepid reaction illustrates just how tenuous sentiment is in the presence of macroeconomic headwinds.
Altcoins Join the Downturn
Major altcoins followed Bitcoin down. Ether decreased by 4.4% to $3,688.0, losing 1.3% this week. XRP declined 4.8% to $2.9914, nursing a deeper weekly decline of 5.8%.
Solana and Cardano lost around 6% each, with weekly declines between 7% and 11%. In the memecoins, Dogecoin plunged 6.6%, and $TRUMP dropped 5.8%, taking its weekly loss to 12.4%.
All Eyes on Nonfarm Payrolls
Attention now turns to Friday’s nonfarm payrolls release. If data indicates further labour market vigour, it may provide the Fed with fewer incentives to reduce interest rates shortly.
A solid print may even bear down more heavily on risk assets, including Bitcoin, as expectations for easier monetary policy fade further.
Tariffs Redefine Bitcoin’s Macro Narrative
Trade tariffs have no direct impact on cryptocurrencies. However, they do remake the general macroeconomic landscape. In this instance, tariffs have made it more difficult for the Federal Reserve’s policy trajectory. That, in turn, is driving risk aversion.
Bitcoin—previously thought to be geopolitically impervious—is now behaving more like a typical asset. The increasingly macro-driven trigger for the crypto signals a transformation of identity. With greater institutional participation, Bitcoin’s destiny may become more and more determined by global economic policy rather than merely crypto-related news.
