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Bitcoin remained largely unchanged on Tuesday, staying within its recent trading range as traders weighed the growing uncertainty surrounding U.S. trade tariffs and economic growth, which kept risk appetite subdued. The world’s largest cryptocurrency was flat at $114,373.5 as of 00:57 ET (04:57 GMT), continuing its struggle to build on its mid-July record highs.
U.S. Economic Concerns and Tariff Uncertainty Weigh on Risk Appetite
Bitcoin’s movement mirrored the broader crypto market, which was also constrained by risk-averse sentiment. The U.S. economic outlook remained in focus after softer-than-expected U.S. nonfarm payrolls data for July, along with downward revisions to payrolls in the previous two months, showed signs of a cooling labor market. Although the weaker jobs data reinforced expectations for a Federal Reserve rate cut in September, it did little to spark optimism in crypto markets, which have been struggling to gain momentum since the record highs hit earlier in the month.
Uncertainty over U.S. President Donald Trump’s trade policies also weighed on sentiment. Trump’s recent threat of steep tariffs against India over its purchases of Russian oil further exacerbated concerns about global trade and economic stability, pushing the rupee to record lows. The looming trade tariffs, set to take effect this week, contributed to a continued cautious stance among investors, with uncertainty hanging over the potential impacts on global markets.
Ether Outpaces Bitcoin Following Corporate Ether Treasury Announcement
While Bitcoin struggled, Ether outpaced its rival cryptocurrency, buoyed by an announcement from 180 Life Sciences. The company said it raised $425 million through a private placement to establish an Ether treasury. The announcement sent Ether prices up 3.4%, bringing its value to $3,656.14. 180 Life Sciences plans to deploy the funds primarily to purchase Ether, following a similar strategy used by corporate Bitcoin holders like Strategy. This move, coupled with plans to rebrand as ETHZilla Corp, helped provide strong support for Ether, which has garnered increasing corporate interest.
Altcoins See Modest Gains as Risk Appetite Shows Some Improvement
Broader altcoin markets followed Ether’s lead, posting modest gains. XRP rose 1.7%, Cardano gained 1.8%, and Solana saw a notable 3.7% increase. Memecoins also saw some positive movement, with Dogecoin rising 2.7% and $TRUMP adding 0.4%.
Looking Ahead: Impact of Trade Tensions and Economic Data on Crypto Markets
As trade tensions continue to escalate and global economic uncertainties remain high, crypto markets are likely to stay volatile. The uncertainty surrounding the U.S. tariffs and their potential impact on global growth remains a key factor, with further developments in the trade front likely to influence investor sentiment. Additionally, the upcoming U.S. economic data releases, including inflation and employment reports, will continue to shape expectations for future monetary policy, potentially driving more volatility in speculative assets like Bitcoin and Ether.
For now, the crypto market appears to be in a wait-and-see mode, with investors cautiously navigating through these uncertain times, while some are seizing opportunities to accumulate assets like Ether amid growing corporate adoption.
