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Bitcoin Faces Pressure Amid U.S. Trade Uncertainty and Slowing Economic Growth

Bitcoin continued its downward trajectory on Wednesday, falling by 0.8% to $113,467.7 as uncertainty surrounding U.S. trade tariffs and economic slowdown weighed heavily on investor sentiment, keeping risk-driven assets under pressure. The cryptocurrency is lingering near a one-month low reached earlier in the week.

Broader cryptocurrency markets mirrored Bitcoin’s decline, with altcoins losing momentum after a brief recovery earlier this week. Many crypto assets also remained vulnerable to profit-taking following strong gains in July.

Bitcoin Treasury Companies Face Peak, Says Galaxy’s Novogratz

Michael Novogratz, founder of Galaxy Digital and a prominent crypto advocate, warned on Tuesday that the trend of companies built to hold Bitcoin as part of their balance sheets may have peaked.

Novogratz expressed concern that the rise of Bitcoin and Ether treasuries might limit opportunities for new entrants to the sector. He highlighted that this could lead to liquidity constraints, making it more challenging for newer companies to raise funds and gain exposure to the digital assets.

His comments came amid a growing trend of firms raising equity to invest in Bitcoin, following the success of Michael Saylor’s Strategy (NASDAQ: MSTR), which is the largest corporate holder of Bitcoin. Despite these moves, however, Bitcoin’s price remained under pressure.

Profit-Taking Continues Amid Trade Tensions

Bitcoin’s price remains sensitive to external factors, including U.S. trade policies. President Donald Trump’s ongoing threats of higher tariffs, particularly on India due to its continued purchases of Russian oil, have added to investor jitters. Trump’s broader tariffs on major trading partners are also expected to come into effect on Friday, adding further uncertainty to the market.

Concerns over the slowing U.S. economy also continue to weigh on the broader market, especially after weak nonfarm payroll data last week. This has led to a rise in bets that the Federal Reserve may implement further interest rate cuts in September, creating a more challenging environment for risk assets like cryptocurrencies.

Altcoins Lose Ground Amid Broader Market Decline

In the altcoin space, Ether (ETH), the second-largest cryptocurrency, fell 0.7% to $3,637.53, while XRP dropped nearly 3% to $2.95. Other altcoins, such as Solana and Cardano, saw even sharper declines, with losses of 2.7% and 3.4%, respectively.

Meme tokens, including Dogecoin and $TRUMP, also saw negative movements, losing 3.3% and 2.4% respectively.

The combination of persistent uncertainty surrounding trade tensions, economic slowdown concerns, and the scaling back of risk appetite has led to a subdued performance for Bitcoin and the broader cryptocurrency market. With key economic events and U.S. trade tariff developments looming, traders remain cautious, and Bitcoin’s price volatility is likely to persist in the coming days.

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