Bitcoin Pulls Back: Trump’s Threats and Fed Weigh on Crypto
The cryptocurrency market is experiencing a slight decline this Friday, with Bitcoin (BTC) trimming around 1% and trading just above $104,000, still far from its all-time high of $109,000, according to Binance data.
In contrast, Ethereum (ETH) is up 1.5%, reaching $3,250. The altcoin market presents a mixed picture: while tokens like Tron (TRX), Chainlink (LINK), and Avalanche (AVAX) are rising between 2% and 4%, others, including XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), are facing losses of around 2%.
DeepSeek Impact and Fed Decision
Recent fluctuations are driven by a combination of factors, notably the impact of Deepseek’s emergence, which has sparked a “technological tsunami.” Additionally, the Federal Reserve’s pause in interest rate cuts has stalled the crypto market rally. Fed Chair Jerome Powell stated that the Committee is in “wait-and-see mode,” with no clear direction on future fiscal, regulatory, or tariff policies, adding to market uncertainty.
Trump’s Threats
Trump Tariff Threats
Amid this uncertainty, recent tariff threats from U.S. President Donald Trump have become a key obstacle to Bitcoin’s recovery. Trump has reiterated his plan to impose a 25% tariff on imports from Canada and Mexico starting February 1, while also considering new tariffs on Chinese goods. He has also warned BRICS nations against replacing the U.S. dollar as the global reserve currency, reigniting fears about economic stability.
These threats have driven gold prices to record highs, with an ounce trading near $2,799, marking its fifth consecutive weekly gain.

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