Bitcoin Drops 4.3% to $106,267.6 Amid Trump Tariff Uncertainty

Bitcoin's price experienced a notable decline today, dropping to $106,267.6 by 01:44 ET (05:44 GMT) as uncertainty surrounding U.S. President Donald Trump’s trade tariffs spurred sustained profit-taking in crypto. The world’s largest crypto was set for mild weekly losses, as it retreated from last week’s peaks. More corporate buying action failed to lift prices, after Gamestop announced it had purchased over $500 million worth of coins.

Positive regulatory developments also offered limited support, as the Securities and Exchange Commission said it was dropping its lawsuit against crypto exchange Binance. The regulator, under former Chair Gary Gensler, had sued Binance and its founder Changpeng Zhao in June 2023 on allegations of artificially inflating trading volumes, diverting customer funds, and unlawfully facilitating the trading of several crypto tokens that should have been registered as securities. The case was separate from Binance’s November 2023 guilty plea, which saw the exchange slapped with a $4.32 billion penalty for violating federal anti-money laundering laws. Zhao had served a four-month sentence in prison.

Bitcoin faced extended profit-taking this week after it raced to a record high of over $111,000 last week. Risk appetite was dented by vastly contrasting signals on Trump’s tariff plans. An appeals court ruled on Thursday to temporarily allow Trump’s tariff agenda, after a federal trade court ruled to block his tariffs earlier this week. Trump lashed out against the judges involved in the trade court decision, and said he hoped that the Supreme Court will back his tariffs.

Analysts warned that prolonged legal sparring over Trump’s tariffs only stood to increase market uncertainty over their impact. Concerns over the economic impact of Trump’s tariffs were a key weight on risk-driven assets this year, especially as a swathe of economic data pointed to U.S. weakness. However, this notion was marginally offset by a revised reading on first quarter gross domestic product, which showed the U.S. economy shrank slightly less than initially estimated.

Losses in Bitcoin spilled over into broader crypto markets. World no.2 crypto Ether fell 3.1% to $2,642.11, while XRP fell 3.1% to $2.2134. Solana and Cardano fell 4.3% and 5.6%, respectively, while Polygon shed 3.7%. Among meme tokens, Dogecoin fell 7.7%, while $TRUMP slid 6.4%.

Despite the recent decline, Bitcoin's price remains relatively high compared to its historical levels. The digital currency has seen significant growth in recent years, driven by increasing adoption and institutional investment. However, the current market conditions highlight the volatility and risk associated with investing in cryptocurrencies.

Investors are closely monitoring the situation, as any developments regarding Trump's tariff policies could have a significant impact on Bitcoin's price. The market is also keeping an eye on other factors that could influence the digital currency's value, such as regulatory developments and technological advancements. As the situation continues to evolve, investors will need to remain vigilant and adapt their strategies accordingly.