Bitcoin Dips as Trade War Fears Weigh on Markets, Trump-Binance Deal Eyed

Bitcoin fell 2.2% to $80,833 on Thursday as fears of a Trump-led global trade war and recession concerns pressured risk assets. Despite softer-than-expected U.S. inflation data, crypto markets struggled as investors remained wary of economic instability.

President Trump’s 25% tariffs on steel and aluminum took effect Wednesday, with further duties on European imports expected. Markets fear these trade policies could disrupt global trade, drive inflation, and trigger a recession. While the Trump administration downplayed these concerns, uncertainty continues to weigh on investor sentiment.

Bitcoin has underperformed traditional markets in 2025, dropping 10% year-to-date compared to a 5% decline in the S&P 500. Crypto markets remain highly sensitive to risk-off sentiment, with major altcoins also in the red. Ethereum fell 2.4% to $1,849, while Solana and Cardano posted losses. XRP, however, gained 1% to $2.27, while Binance’s BNB token surged over 2%.

The BNB spike followed reports that a Trump family representative explored buying a stake in Binance.US. According to the Wall Street Journal, the potential investment was linked to World Liberty Financial, a crypto project backed by Trump allies. The talks, reportedly initiated by Binance, aimed to restore the exchange’s U.S. market access.

Meanwhile, the latest Producer Price Index (PPI) data showed no price increase in February, easing inflation worries ahead of next week’s Federal Reserve meeting. Core PPI unexpectedly fell 0.1%, its first decline since July. Despite these signs of cooling inflation, market volatility persists, with investors closely watching Fed policy moves.

Crypto markets remain under pressure as macroeconomic uncertainties and regulatory risks continue to shape sentiment.