Bitcoin Dips as Investors Eye Fed Policy and US Tariff Uncertainty

Bitcoin edged lower for the third consecutive day, slipping 0.3% to $95,472. Investors remain cautious amid uncertainty over U.S. trade tariffs and the Federal Reserve’s interest rate outlook. The Biden administration signaled potential reciprocal tariffs, raising concerns about global economic growth, which could weigh on risk assets like Bitcoin.

Cryptocurrencies, often seen as a gauge for risk appetite, remain sensitive to macroeconomic trends. Investors are also awaiting clarity on the Fed’s next move. Recent U.S. Consumer Price Index (CPI) data showed inflation persisting above the central bank's 2% target, fueling speculation of prolonged high-interest rates, which could reduce Bitcoin’s appeal compared to traditional assets.

Meanwhile, Standard Chartered reaffirmed its bold $500,000 Bitcoin price target, citing growing institutional, banking, and sovereign adoption. The bank highlighted strong institutional inflows, with spot Bitcoin ETFs accumulating 499,000 BTC in 2024. Abu Dhabi’s sovereign wealth fund disclosed a 4,700 BTC position in BlackRock’s IBIT ETF, signaling rising sovereign interest. Analysts predict the investor base will expand from retail and hedge funds to pension funds and central banks.

In Hong Kong, Standard Chartered, Animoca Brands, and Hong Kong Telecommunications (HKT) announced plans to launch a licensed HKD-backed stablecoin. This move aligns with Hong Kong’s push to position itself as a global crypto hub while expanding digital asset adoption for domestic and cross-border payments.

Altcoins also saw steep declines, with Ether plunging 5% to $2,680, XRP down 5.3%, and Solana dropping over 9%. Meme tokens like Dogecoin and $TRUMP tumbled 6.8% and 9.3%, respectively. As markets navigate economic uncertainties, Bitcoin’s trajectory remains closely tied to regulatory developments and institutional demand.