Bitcoin price falls sharply as rising trade war tensions dampened risk appetite. The leading cryptocurrency dropped 2.2% to $80,833.0 by 18:39 GMT. Investors remained cautious amid fears of a U.S. recession and escalating tariffs imposed by the Trump administration.
Bitcoin’s recent rebound stalled as concerns over a potential U.S. recession resurfaced. President Trump’s decision to impose 25% tariffs on steel and aluminum took effect this week. Additionally, reports indicate that the U.S. may introduce higher tariffs on European imports.
These actions have heightened fears of global trade disruption and rising inflation, raising concerns about economic stability. Trump and his advisors have dismissed fears of a severe impact but acknowledged possible short-term market volatility.
Cryptocurrencies, including Bitcoin, tend to struggle during periods of uncertainty. Investors generally move away from speculative assets when market volatility increases. So far in 2025, Bitcoin has underperformed the U.S. stock market. While the S&P 500 index has lost over 5% year-to-date, Bitcoin price has fallen approximately 10%.
Market uncertainty, coupled with shifting tariff policies, has made investors hesitant to take on high-risk assets. Even as inflation concerns ease, the broader crypto market remains pressured by economic uncertainty.
In other crypto news, reports suggest that a Trump family representative engaged in discussions to acquire a stake in Binance.US. According to the Wall Street Journal, these talks involved World Liberty Financial, a Trump-backed crypto venture.
Real estate investor Steve Witkoff, a longtime Trump associate, reportedly played a key role in the negotiations. The discussions began last year, as Binance sought political connections to re-enter the U.S. market. Following this news, Binance’s BNB token jumped more than 2%, briefly surpassing $600 before settling at $592.05.
The broader cryptocurrency market also struggled despite Bitcoin’s mild recovery. Ethereum dropped 2.4% to $1,849.25. Meanwhile, Solana and Cardano declined, while XRP managed to rise over 1% to $2.27.
Meme tokens also faced losses, with Dogecoin falling 1.7% and the $TRUMP token dropping 0.9%. Polygon, another popular altcoin, fell more than 3%.
On the economic front, inflation fears slightly eased as U.S. wholesale prices remained unchanged in February. The Producer Price Index (PPI) report showed no increase for the month, following a 0.6% jump in January. Core PPI, which excludes food and energy prices, fell 0.1%, marking the first decline since July.
This inflation data arrives just days ahead of the Federal Reserve’s upcoming meeting. The central bank is widely expected to maintain its current interest rate policy amid ongoing economic uncertainty.
Stay updated with the latest Forex and cryptocurrency market trends by visiting our website: Fixio Markets.
Bitcoin price falls to $80K as U.S. trade war concerns weigh on risk sentiment. Crypto markets struggle while inflation data eases fears.
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