Bitcoin Drops Below $80K Amid Trade War Fears and Fed Uncertainty

Bitcoin extended losses on Friday, tumbling 1.6% to $81,914.20 as investors braced for the Federal Reserve meeting next week. The leading cryptocurrency was on track for a 5% weekly decline, slipping below the key $80,000 level as global economic tensions intensified.

A risk-off sentiment gripped markets following U.S. President Donald Trump’s threat of a 200% tariff on European alcohol, retaliating against EU duties on American whiskey. With additional reciprocal tariffs expected on April 2, fears of a potential U.S. recession deepened, prompting investors to flee risk assets, including cryptocurrencies. Meanwhile, gold surged to record highs, reflecting heightened uncertainty.

The Federal Reserve’s upcoming March 18-19 meeting remains a focal point. While the Fed is widely expected to hold interest rates steady, concerns persist over how ongoing trade disputes could stoke inflation and impact the broader economy.

Adding to crypto market volatility, Reuters reported that Russia is increasingly using Bitcoin, Ethereum, and Tether (USDT) in oil trade with China and India to bypass Western sanctions. Transactions have reportedly grown to tens of millions of dollars per month, streamlining payment flows amid financial restrictions.

Altcoins showed mixed movements. Ethereum edged up 1.4% to $1,894.97 but was set for a 14% weekly decline. XRP rose 2.2% to $2.2852 but remained down 2% for the week. Solana gained 0.5%, while Cardano and Polygon lost 1.2% and 0.8%, respectively. Meme tokens also saw varied performance, with Dogecoin slipping 1% and $TRUMP surging 6.8%.

With market uncertainty high, investors remain cautious ahead of key economic developments.