Bitcoin Rises to $81,830 but Faces Pressure from Tariff Uncertainty and Inflation Fears

Bitcoin rebounded slightly on Wednesday, climbing 2% to $81,830.3 by 01:21 ET (05:21 GMT), but gains remained limited amid ongoing economic concerns. Investors stayed cautious ahead of key U.S. inflation data, while uncertainty over trade tariffs and slowing growth kept risk appetite subdued.

Market sentiment took a hit as President Donald Trump’s 25% tariffs on steel and aluminum imports went into effect. His mixed stance on tariffs—easing restrictions for Canada but maintaining higher duties elsewhere—sparked fears of economic instability. While Trump dismissed recession concerns, U.S. Commerce Secretary Howard Lutnick defended the risks, stating they were “worth it” to implement Trump’s policies.

This economic uncertainty extended to financial markets, leading to a prolonged sell-off in U.S. stocks, which spilled over into crypto. Risk assets like Bitcoin tend to struggle during heightened volatility, and Trump’s recent Bitcoin reserve announcement failed to boost sentiment, as it does not involve new crypto purchases.

Broader crypto markets remained muted after two weeks of sharp declines. Ether dropped 1.1% to $1,873.87, hitting a three-year low, while XRP, Cardano, and Solana hovered near annual lows. Meme token Dogecoin gained 2.3%, while $TRUMP fell 2.2%.

Investors are now focused on the U.S. Consumer Price Index (CPI) report, expected to confirm persistent inflation in February. Higher-than-expected inflation could reduce the Federal Reserve’s incentive to cut interest rates, adding further pressure on speculative assets like crypto.

With Bitcoin struggling to regain momentum and broader macroeconomic headwinds persisting, crypto markets remain under pressure, having erased all gains since Trump’s November election victory.