#CreatorPad Investing.com - Bitcoin fell on Friday, concluding a week of declines as cryptocurrency markets were affected by profit-taking amid growing fears about U.S. trade tariffs and interest rates.
Moreover, U.S. job growth in July came in below expectations, while the unemployment rate rose, indicating potential pressures in the labor market.
Bitcoin fell by 2.4% to $115,890 by 16:22 Saudi time. The largest cryptocurrency in the world is expected to lose about 3% this week, having struggled to gain ground after reaching record levels in mid-July.
A large purchase of Bitcoin by the largest institutional holder, Strategy (NASDAQ:MSTR), did not stimulate prices this week. The company also reported stronger-than-expected earnings for the quarter ending in June, although its shares did not show a significant response to the news.
Bitcoin declines as tariff fears impact risk appetite
Bitcoin's losses on Friday came after U.S. President Donald Trump signed an order on Thursday setting tariffs against a range of U.S. trade partners. The tariffs will take effect in seven days, just after the deadline Trump set on August 1.
But markets are still looking for more clarity regarding the upcoming tariffs, especially considering Washington has made several last-minute trade deals with major global economies.
Trump's tariffs were seen as a major source of uncertainty for the Federal Reserve, which indicated earlier this week that it would keep interest rates unchanged until the inflationary effects of the tariffs become clear.
The Federal Reserve's comments also affected risk appetite this week, which in turn pressured cryptocurrency markets.
While trade tariffs do not directly affect cryptocurrencies, their impact on market sentiment influences speculative assets like Bitcoin.
However, high interest rates for a longer period put some direct pressure on Bitcoin, as they tend to reduce the appeal of high-risk speculative assets.
Job growth was slow in July, indicating risks in the labor market.
Job creation in the U.S. slowed in July, coming in below expectations indicating potential cracks in the labor market.
Non-farm jobs rose by 73,000 during the month, a modest increase compared to the revised June figure of 14,000, but still well below the expected increase of 100,000, according to Dow Jones estimates.
In addition to the weaker tone, employment data for May and June was significantly revised downward, with a total of 258,000 jobs cut from previous reports.
Meanwhile, the unemployment rate rose to 4.2%, aligning with expectations. Revised data showed job growth in June was cut from 147,000 to 14,000, and the May figure was revised down from 144,000 to just 19,000.
Weak job data and sharp revisions may push the Federal Reserve to consider a rate cut at its September meeting. Following the data release, futures traders increased the likelihood of a rate cut to 63%, up from 40% the previous day.
Cryptocurrency prices today: alternative coins follow Bitcoin's decline
Broader cryptocurrency prices fell on Friday, heading toward sharp weekly losses amid profit-taking and a decline in risk appetite.
Among alternative coins, Ether, the second largest cryptocurrency in the world, fell by 4% to $3,654, down 4% this week.
XRP fell by 3.4% to around $3, experiencing a 4% loss this week.
Solana and Cardano fell about 5% each, both down about 5% this week.
Among meme coins, Dogecoin dropped by 5%, while $TRUMP fell by 3.8%.
(Additional reporting by Fahid Karahmetovic.)
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