Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Bitcoin fell 1.6% to $85,910.50 on Friday, mirroring a broader risk-off sentiment as global trade tensions escalated ahead of U.S. reciprocal tariffs. Investors are also cautiously awaiting the PCE inflation report, a key indicator for the Federal Reserve’s rate outlook.
Bitcoin Reacts to Trade War Fears
President Donald Trump’s decision to impose a 25% tariff on all foreign-made cars and auto parts starting April 2 has intensified global trade concerns. In response, Canadian Prime Minister Mark Carney declared that the U.S.-Canada trade relationship is “over”, signaling possible retaliatory tariffs.
Additionally, Trump is set to enforce reciprocal tariffs on major U.S. trading partners on April 2, further increasing fears of a global trade war.
The impact on financial markets:
- U.S. stock indexes declined on Thursday
- Most Asian stock markets slumped on Friday
- Gold hit a record high, as investors sought traditional safe-haven assets
Bitcoin, often seen as a risk asset, faced selling pressure amid this uncertainty.
Fed’s Interest Rate Path Uncertain Amid Inflation Concerns
Markets are closely watching Friday’s PCE inflation data, the Federal Reserve’s preferred inflation gauge.
- The Fed held rates at 4.25%–4.5% in March due to economic uncertainty.
- Policymakers project two rate cuts this year, but Trump’s tariffs could complicate inflation trends, potentially delaying those cuts.
Altcoins See Sharper Declines
Altcoins extended losses as risk sentiment deteriorated:
- Ethereum (ETH): $1,926.96 (-4.8%)
- XRP: $2.2629 (-4.2%)
- Solana (SOL): -3%
- Cardano (ADA): -3.5%
- Polygon (MATIC): -9%
Meme tokens also struggled:
- Dogecoin (DOGE) fell 6.2%
- $TRUMP token plunged 8%
With reciprocal tariffs set for April 2 and inflation data looming, market volatility is expected to remain elevated.
