Bitcoin Steady at $97K Amid Tariff Tensions and Inflation Concerns

Bitcoin remained flat on Monday following a sharp weekend decline driven by renewed trade tensions and investor caution ahead of key U.S. inflation data. The world’s largest cryptocurrency edged up 0.1% to $97,114.6 by 01:54 ET (06:54 GMT) after losing over 4% last week.

Market sentiment weakened after former U.S. President Donald Trump announced a 25% tariff on aluminum and steel imports, just days after his 10% tariffs on China took effect. In response, Beijing imposed retaliatory duties on U.S. exports, including crude oil, LNG, coal, and agricultural machinery. The uncertainty kept investors wary of risk assets, impacting crypto markets.

Despite being considered a hedge against market volatility, Bitcoin struggled to maintain value amid economic turmoil. Meanwhile, gold surged to record highs as investors sought traditional safe havens. The U.S. dollar also gained strength, as traders anticipated prolonged high interest rates due to inflationary pressures from tariffs.

All eyes are now on the U.S. Consumer Price Index (CPI) report, due Wednesday, which is expected to show a 2.9% annual increase, mirroring December’s figures. Sticky inflation has led Federal Reserve officials to maintain a cautious stance on rate cuts, with some expressing concerns over Trump’s policies' long-term effects.

Altcoins followed Bitcoin’s muted movement. Ethereum dropped 1.1% to $2,635.09 after a 15% weekly loss, while XRP fell 2.8% to $2.3943, extending its 20% slump. Solana, Polygon, and Cardano also declined, with meme coin Dogecoin sliding 2.3%. Trump-themed token $TRUMP tumbled 9% to a new record low.

As macroeconomic concerns weigh on risk assets, crypto traders remain cautious ahead of inflation data and further policy developments.