Bitcoin Holds at $96.8K Amid Fed Uncertainty and Tariff Concerns

Bitcoin remained range-bound on Thursday as investors hesitated amid U.S. tariff concerns and uncertainty over the Federal Reserve’s rate outlook. The cryptocurrency inched up 0.2% to $96,811.1 by 6:15 GMT, struggling to gain momentum despite Wednesday’s 1% uptick following renewed U.S.-Russia diplomatic talks.

Reports of negotiations over the Russia-Ukraine conflict slightly boosted market optimism, easing inflation fears. However, Bitcoin’s muted response reflected cautious sentiment as traders awaited stronger catalysts.

Broader financial markets faced headwinds from potential U.S. tariffs on auto, semiconductor, and pharmaceutical imports, adding to risk-off sentiment. Meanwhile, the Fed’s latest meeting minutes reiterated a cautious stance on rate cuts, warning that Trump's proposed tariffs could disrupt supply chains and drive inflation higher. High-interest-rate environments typically pressure Bitcoin due to liquidity constraints.

Crypto trading volumes remained subdued, with analysts noting Bitcoin’s consolidation within tight ranges. A breakout could spark renewed market activity, but investors appeared hesitant to commit to significant positions.

Altcoins showed mixed performance. Ethereum rose 0.5% to $2,728.8, while XRP dropped 1.3% to $2.7028. Solana gained 2%, Cardano rose 0.8%, and Polygon edged up 0.3%. Meme token Dogecoin increased 0.2%, while $TRUMP fell 0.7%.

With market participants closely monitoring economic developments, Bitcoin remains in a holding pattern, awaiting clearer signals for its next move.