On Friday, bitcoin continued to fall, posting its second consecutive weekly decline amid a decline in global risk appetite.
This was the result of US President Donald Trump's announcement of new tariffs, which increased fears of global trade tensions.
Writes UNN with reference to Inveting.
As of 01:21 EST (06:21 GMT), bitcoin was down 1.6% at $96,723.5, down almost 3% from a week earlier. Last week, its price fell by 4%.
Trading activity remained low, and exchange rate fluctuations were insignificant, reflecting investor caution amid the uncertain macroeconomic situation.
After Trump's statement on February 1, market sentiment deteriorated sharply. Stocks started to decline, and investors preferred safe assets, which also affected the crypto market.
Bitcoin, which is often seen as a high-risk asset, reflected the general weakening of sentiment. In addition, the lack of new positive factors did not contribute to price growth in the crypto sector.
The market is also experiencing uncertainty about the US Federal Reserve's policy and the global economic outlook, which is holding back trader activity.
At the same time, despite the recent decline, bitcoin continues to show significant year-on-year growth, driven by increased interest in cryptocurrencies and expectations of lighter regulation under the Trump administration.
However, analysts warn that the price may remain volatile in the near term as investors assess economic policy and global financial trends.
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The US nonfarm payrolls report for January, which will be published shortly, is expected to help predict the Fed's next steps on the interest rate.
Meanwhile, institutional interest in cryptocurrencies is growing. The investment firm Franklin Templeton has filed an application with the US Securities and Exchange Commission (SEC) to launch a new ETF for bitcoin and ether, and is considering adding other cryptocurrencies in the future.
This decision is part of a general trend of increasing demand for digital assets from traditional financial companies, especially after the SEC's approval of exchange-traded funds for bitcoin and ether. The regulator's further decision will determine the launch of the new fund and its impact on the crypto market.
Altcoins have suffered significant losses that exceeded the drop in bitcoin.
- Ethereum (ETH) fell 5.4% to $2,677, for a total weekly decline of 14%.
- XRP lost 7.1% to $2.2903 and could end the week with a 20% drop.
- Solana was down 6%, Polygon was down 7.9%, and Cardano was down 6.2%.
- Among meme coins, Dogecoin fell by 5.8%.
Recall
Bitcoin remained largely flat yesterday, as risk appetite remained subdued amid escalating trade tensions between the US and China, while MicroStrategy, the largest corporate holder of bitcoin, posted its fourth consecutive quarterly loss.
