Bitcoin Steady Amid Trump Tariff Threats and IMF-Driven El Salvador Reform

Bitcoin saw minor losses on Friday, hovering around $104,630 as concerns over U.S. trade tariffs under Donald Trump weighed on risk appetite. The cryptocurrency experienced wild swings this week, briefly dipping below $100,000 before rebounding to a range between $100,000 and $105,000.

Trump’s renewed tariff threats against BRICS nations, alongside potential 25% duties on Canada and Mexico and a 10% levy on China, heightened fears of a global trade war, pressuring crypto markets. Investors also remained cautious ahead of key U.S. PCE inflation data, a crucial factor in the Federal Reserve’s interest rate decisions.

El Salvador approved a major amendment to its Bitcoin law to secure a $1.4 billion IMF deal. The revision makes Bitcoin acceptance voluntary in the private sector, addressing IMF concerns over its initial legal tender status. The move signals a shift in the country’s Bitcoin strategy after its debt-backed BTC adoption failed to boost economic growth.

Meanwhile, the memecoin sector surged after Errol Musk, father of Elon Musk, revealed plans to launch "Musk It" ($MUSKIT). The token, initially introduced by a Middle Eastern firm in December, gained 440% following Musk’s interview with Fortune. However, Elon Musk has no involvement in the project.

Elsewhere, major altcoins remained steady. Ethereum rose 3% to $3,355, XRP traded flat at $3.097, and Solana, Cardano, and Polygon saw slight gains. Dogecoin climbed 0.7%, while Trump’s $TRUMP token slid 4.2%, now down 60% from its post-launch peak.

With markets eyeing inflation data and ongoing geopolitical developments, Bitcoin remains in a tight range, awaiting clearer signals for its next move.