Bitcoin Curbs Gains as Concerns Over Interest Rates and Tariffs Continue
Bitcoin pulled back from its recent highs on Thursday after Trump said he would start sending messages to major economies outlining his tariffs by Friday at the latest.
Trump stated that around 10-12 countries would receive the messages on Friday, with his tariffs ranging from 10% to 20% and 60% to 70%. The president said the tariffs would take effect starting August 1.
Trump's remarks escalated concerns about the economic impact of his planned tariffs, which would significantly disrupt global trade.
Uncertainty over Trump's tariffs was also cited as a key driver for the Federal Reserve to keep interest rates steady, with Chair Jerome Powell warning of the potential inflationary effects of the tariffs.
Stronger-than-expected non-farm payroll data released on Thursday sharply reduced bets that the Fed would cut interest rates as soon as July, and markets also scaled back expectations for easing in September.
Higher interest rates for a longer period tend to pressure cryptocurrency assets, as they limit the liquidity available for investment in this sector.