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Bitcoin traded in a tight range on Thursday, as investors remained cautious amid ongoing U.S. tariff concerns and uncertainty surrounding the Federal Reserve’s interest rate outlook. The cryptocurrency lacked clear momentum, struggling to break out of its recent consolidation phase.
Bitcoin Stagnates Despite Diplomatic Developments
As of 01:15 ET (6:15 GMT), Bitcoin edged up 0.2% to $96,811.1, following a 1% gain on Wednesday that was driven by reports of renewed U.S.-Russia diplomatic engagements. The potential for de-escalation in the Russia-Ukraine conflict had slightly lifted market sentiment, as investors speculated on its impact on global inflation. However, Bitcoin failed to sustain a rally, with price action remaining muted.
U.S. Tariff and Fed Policy Uncertainty Weigh on Crypto Markets
Broader crypto market sentiment remained cautious, with investors grappling with mixed macroeconomic signals:
- The prospect of increased U.S. tariffs on key imports, including autos, semiconductors, and pharmaceuticals, fueled risk aversion in financial markets, weighing on risk-sensitive assets like Bitcoin.
- The Federal Reserve’s latest meeting minutes, released on Wednesday, signaled that rate cuts are unlikely in 2025, citing persistent inflation risks and potential supply chain disruptions from Trump’s proposed tariffs.
- With higher-for-longer interest rates, Bitcoin faces liquidity constraints, as tighter monetary policy historically pressures speculative assets.
Low Trading Volumes Keep Bitcoin in Consolidation Phase
Reflecting the cautious market tone, trading volumes in the crypto market remained subdued, leaving Bitcoin range-bound. Technical analysts suggest that a breakout above key resistance levels or a deeper pullback could trigger renewed market activity. Until then, investors are waiting for clearer signals before making significant bets.
Altcoins See Mixed Performance, Marginal Gains
The broader cryptocurrency market saw mixed moves, mirroring Bitcoin’s lackluster performance:
- Ether (ETH) edged 0.5% higher to $2,728.8.
- XRP declined 1.3% to $2.7028.
- Solana gained 2%, while Cardano added 0.8%.
- Polygon rose 0.3%.
- Among meme coins, Dogecoin gained 0.2%, while $TRUMP slipped 0.7%.
With crypto markets largely in a holding pattern, investors remain focused on macroeconomic developments and monetary policy cues for directional clarity in the coming sessions.
