Bitcoin Dips as Trump Tariff Uncertainty Sparks Crypto Sell-Off

Bitcoin extended its recent pullback on Friday, slipping 1.3% to $106,267.6 as market uncertainty over former President Donald Trump’s trade tariffs triggered further profit-taking. Despite positive catalysts such as corporate accumulation and regulatory relief, the world’s largest cryptocurrency is on track for a mild weekly loss after touching a record high above $111,000 last week.

Investor sentiment soured amid conflicting legal decisions on Trump’s tariffs. A federal appeals court temporarily reinstated the tariffs, overturning a prior ruling by a trade court. Trump publicly criticized the earlier ruling and voiced confidence the Supreme Court would ultimately support his policy. Analysts warned the ongoing legal battles may prolong market volatility and weigh on risk assets, including crypto, especially as economic indicators show signs of weakness in the U.S. economy.

While GDP revisions showed the U.S. economy contracted slightly less than estimated in Q1, the data failed to boost crypto prices. Gamestop’s $500 million Bitcoin purchase also did little to reverse the downward trend.

In regulatory news, the U.S. Securities and Exchange Commission dropped its lawsuit against Binance and its founder Changpeng Zhao with prejudice, signaling a regulatory shift under the Trump administration. The dismissed charges had accused Binance of inflating trading volumes and mishandling customer funds. However, Binance’s native token BNB was down 1.1% at $674.20.

Altcoins mirrored Bitcoin’s decline. Ethereum fell 3.1% to $2,642.11, XRP dropped 3.1% to $2.2134, while Solana and Cardano slid 4.3% and 5.6%, respectively. Polygon fell 3.7%. Meme coins were hit harder, with Dogecoin plunging 7.7% and the Trump-themed token $TRUMP down 6.4%.

The crypto market remains vulnerable to macroeconomic uncertainty and shifting regulatory dynamics, keeping volatility elevated across digital assets.