Bitcoin Declines to $84K Amid Federal Rate Concerns and Tariff Threats
Bitcoin dropped to $84,094 as fears regarding U.S. interest rates and tariffs resurfaced. Strategy secured $711.2 million for more Bitcoin purchases. Altcoins fell, with Ethereum nearing 2021 lows. The market remains volatile due to uncertainties in monetary policy and trade relations, especially against a backdrop of tariff threats.
On Friday, Bitcoin experienced a decline of 3%, trading at $84,094 due to concerns over U.S. interest rates and potential trade tariffs. Investor sentiment deteriorated following the Federal Reserve’s announcement to maintain current rates while providing a cautious forecast for 2025, influenced by ongoing inflation and sluggish growth. This risk aversion extended to crypto markets, contributing to a rebound in the U.S. dollar after recent dips.
Additionally, Strategy, previously known as MicroStrategy, successfully concluded a $711.2 million offering of its 10% Series A Perpetual Preferred Stock. This surpasses its initial $500 million goal, with 8.5 million shares sold at $85 each. With over 499,200 BTC already in its portfolio, Strategy anticipates exceeding 500,000 BTC in upcoming acquisitions.
Altcoins similarly followed Bitcoin’s downward trend after a brief recovery midweek. Ethereum fell below $2,000, approaching its 2021 lows. XRP dropped 2% to $2.40, even after a temporary surge linked to the SEC’s dismissal of its case against Ripple—a decision positively influenced by pro-crypto leadership from the Trump era. The SEC also recently dropped lawsuits against crypto exchanges Coinbase and Kraken.
The performance of other cryptocurrencies was varied: Cardano decreased by 1.4%, Polygon fell by 2.9%, while Solana saw a slight increase of 0.1%. Meme coins also faced losses, with Dogecoin down 0.6% and $TRUMP declining by 1%. The prevailing uncertainty regarding U.S. monetary policy and trade relations, particularly with impending tariff threats from Trump, continues to exert pressure on speculative investments like cryptocurrencies. As the market awaits clearer indications from the Federal Reserve, digital assets are likely to remain volatile in the immediate future.
In summary, Bitcoin’s recent decline to $84,094 reflects growing concerns over U.S. interest rates and potential trade tariffs, leading to increased risk aversion among investors. The successful funding by Strategy indicates continued investments in Bitcoin, even as altcoins faced declines. With significant uncertainties surrounding monetary policy, the cryptocurrency market may experience ongoing volatility as investors seek guidance from the Federal Reserve.
Original Source: www.tokenpost.com
Post Comment