Bitcoin Stagnates Amid Trade Uncertainty, Inflation Concerns

Bitcoin prices remained largely unchanged on Friday, reflecting a muted weekly performance as concerns over U.S. trade tariffs and persistent inflation kept investor demand for crypto limited.

Despite reports that GameStop Corp (NYSE:GME) is considering investing in Bitcoin and crypto, the news failed to generate significant price movements in the crypto market.

• Bitcoin held steady at $96,636.0 as of 00:52 ET (05:52 GMT), marking a flat weekly performance.

GameStop’s Crypto Move Fails to Lift Prices

CNBC reported on Thursday that GameStop—the original meme stock—is exploring investments in crypto using its $4.62 billion cash reserves. While GameStop shares surged on the news, it did not translate into gains for Bitcoin or broader crypto markets.

• The company, which has been struggling to diversify beyond its core game retail business, had previously ventured into crypto but later shut down its NFT marketplace due to declining interest.
• GameStop’s past crypto initiatives include a briefly launched NFT marketplace and crypto wallet services, which it later suspended citing regulatory concerns.

Crypto Market Reactions & Regulatory Outlook

• Regulatory uncertainty in the U.S. has kept crypto markets on edge, though President Donald Trump’s administration is expected to introduce clearer regulations following new executive orders establishing a regulatory framework for the industry.
• However, Trump’s recent trade policies, including tariff hikes on steel and aluminum imports, have weighed on crypto market sentiment, leading to steep losses in the past week.

Broader Crypto Market Update

Crypto prices remained mixed as improved risk appetite in traditional financial markets failed to spill over into digital assets.

• Ethereum (ETH) fell 0.7% to $2,700.62
• XRP rose 3.8% to $2.5610
• Solana, Cardano, and Polygon traded in a tight range
• Among meme coins:
  • Dogecoin rose 1.5%
  • $TRUMP token surged 8.5%, recovering from record lows

Macroeconomic Pressure on Crypto

• The U.S. producer and consumer inflation data came in higher than expected for January, reinforcing expectations that the Federal Reserve will maintain current interest rates in the coming months.
• Higher interest rates typically weigh on risk assets, including crypto, as investors seek safer returns in traditional markets.

Market Outlook

While Bitcoin remains stable near $96,000, a breakout is unlikely in the short term unless:

• Clearer regulatory policies emerge under Trump’s administration
• Macroeconomic conditions improve, reducing interest rate concerns
• Institutional adoption gains momentum, such as GameStop finalizing a crypto investment plan

For now, crypto remains under pressure, with trade tensions and inflation concerns dampening bullish momentum.