Bitcoin Slides to $84K Amid Fed Rate Jitters and Tariff Fears

Bitcoin slipped 3% to $84,094 on Friday amid renewed fears over U.S. interest rates and potential trade tariffs. The retreat came as investor sentiment soured following the Federal Reserve's decision to hold rates steady and issue a cautious outlook for 2025, citing persistent inflation and weak growth. Risk aversion across Wall Street also spilled into crypto markets, with the U.S. dollar rebounding after recent losses.

Meanwhile, Strategy—formerly known as MicroStrategy—completed an upsized $711.2 million offering of its 10% Series A Perpetual Preferred Stock, signaling plans for another large Bitcoin purchase. The company sold 8.5 million shares at $85 each, surpassing its $500 million target. With over 499,200 BTC already on its books, Strategy is expected to surpass 500,000 BTC in holdings with its next acquisition.

Altcoins followed Bitcoin lower after a brief midweek rally. Ethereum dropped back below $2,000, nearing 2021 lows. XRP declined 2% to $2.40, despite a short-lived boost earlier in the week when the SEC dropped its case against Ripple—a decision influenced by pro-crypto leadership appointed under Trump. The agency also recently dropped lawsuits against Coinbase and Kraken.

Other tokens showed mixed performance: Cardano slid 1.4%, Polygon lost 2.9%, while Solana edged up 0.1%. Meme coins weren’t spared either, with Dogecoin down 0.6% and $TRUMP dipping 1%.

The uncertainty surrounding U.S. monetary policy and trade relations, especially with Trump’s tariff threats looming in early April, continues to pressure speculative assets like cryptocurrencies. As investors wait for clearer signals from the Fed, digital assets may remain volatile in the near term.