Bitcoin’s price dropped to $84,000 today as concerns over U.S. interest rates and potential new tariffs sparked caution among investors toward high-risk assets like cryptocurrencies. This decline also dragged down other digital currencies, with XRP giving up some gains after the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple. Ether, the world’s second-largest cryptocurrency, similarly slipped from a key level following a brief recovery earlier this week.
Despite a slight uptick for Bitcoin and the broader crypto market over the past week, they’ve faced significant pressure since the start of 2025, driven by economic uncertainty and a broader aversion to risk. U.S. President Donald Trump recently softened his stance on imposing tariffs on Canada and Mexico but remains committed to introducing reciprocal tariffs on major trading partners by early April. He has also repeatedly urged the Federal Reserve (Fed) to cut interest rates, though the central bank has shown no signs of shifting its stance in the near term.
The U.S. dollar regained strength on Thursday and Friday, fully recovering losses seen after the Fed’s decision to hold interest rates steady on Wednesday. The Fed predicts rising inflation and slower economic growth in 2025, while expressing unease about the uncertain effects of Trump’s tariff proposals. Amid growing economic instability, speculative assets like cryptocurrencies often struggle, putting considerable downward pressure on Bitcoin and other digital coins.
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