Bitcoin Drops as Trump’s Tariff Warning Fuels Market Uncertainty

Bitcoin fell on Friday as market sentiment weakened following U.S. President Donald Trump’s warning of new reciprocal tariffs. The cryptocurrency dropped 1% to $95,853, extending last week’s 4% decline.

Trump’s statement on imposing tariffs on imported goods equivalent to those levied on U.S. exports raised concerns over a global trade war. While no specific countries were mentioned, fears of escalating trade tensions pressured risk assets, including Bitcoin and equities.

Adding to the uncertainty, the latest U.S. jobs report showed weaker-than-expected job growth. The Bureau of Labor Statistics reported 143,000 new jobs in January, falling short of the 169,000 forecast. The unemployment rate edged down to 4.0%, while wages grew 0.5%, surpassing estimates. Despite weather concerns, the BLS confirmed no significant impact on data collection.

Macroeconomic worries, Federal Reserve policy expectations, and a lack of strong crypto market catalysts have kept traders cautious. Although Bitcoin remains up significantly over the past year, analysts predict short-term volatility as investors assess economic policies and market trends.

Meanwhile, Franklin Templeton has filed with the SEC to launch a crypto index ETF, offering exposure to Bitcoin and Ether. The fund may expand to include other digital assets pending regulatory approval. Institutional interest in crypto continues to grow, especially after the SEC's approval of Bitcoin and Ether ETFs.

Altcoins followed Bitcoin’s rebound but faced sharp weekly losses. Ether rose 5% to $2,574 but was set for a 17% weekly drop. XRP gained 0.9% to $2.35 but remained down 20% for the week. Solana and Polygon declined, while Cardano saw a 2.8% uptick. Meme coin Dogecoin dipped 3%.

The crypto market remains volatile as investors monitor trade policies, economic data, and regulatory developments.