#BTC

Bitcoin edged marginally lower on Tuesday, marking its third consecutive day of declines as market participants remained cautious amid uncertainty surrounding U.S. trade tariffs and the Federal Reserve’s interest rate outlook

Investors are closely monitoring developments in U.S. trade policy, as President Donald Trump’s administration signaled potential new reciprocal tariffs on every country taxing U.S. imports.

The prospect of escalating trade tensions has raised concerns about a slowdown in global economic growth, which could weigh on risk assets like Bitcoin.

Analysts noted that cryptocurrencies, often seen as a barometer for risk appetite, are particularly sensitive to shifts in macroeconomic sentiment.

Adding to the cautious mood, markets are awaiting clarity on the Federal Reserve’s monetary policy trajectory.

The latest U.S. Consumer Price Index (CPI) data, released last week, showed inflation persisting above the Federal Reserve's 2% target, fueling speculation that the central bank may maintain a hawkish stance for longer than anticipated.

Higher interest rates typically reduce the appeal of non-yielding assets like Bitcoin, as investors seek safer returns in traditional markets