Bitcoin Holds at $109,112 as Tariff Fears and Rate Uncertainty Weigh on Markets

Bitcoin edged lower on Friday, slipping 0.2% to $109,112 after briefly topping $110,500 overnight. The retreat followed renewed market anxiety over U.S. President Donald Trump’s aggressive trade tariffs and fading hopes for near-term Federal Reserve rate cuts.

The leading cryptocurrency remains up 1.6% for the week, logging its second consecutive weekly gain. Earlier optimism surrounding U.S.-China trade progress had briefly lifted Bitcoin out of its month-long $103,000 to $108,000 trading range.

However, momentum faded after Trump confirmed that 10 to 12 countries would begin receiving formal tariff letters on Friday, with new U.S. duties ranging from 10% to 70%, taking effect August 1. The move heightened fears of global trade disruptions, curbing risk appetite across financial markets.

Investor sentiment was also dampened by stronger-than-expected U.S. payroll data released Thursday, which reduced expectations of a Fed rate cut in July or September. Federal Reserve Chair Jerome Powell also cited tariff risks as a reason to maintain current rates, warning of their inflationary impact.

Crypto market activity was muted due to the U.S. Independence Day holiday, with low trading volumes and a broadly bearish tone across altcoins. Ether dropped 0.5% to $2,576, while XRP declined 1.2% to $2.243, despite news that Ripple is pursuing a U.S. banking license. Solana and Cardano both slipped over 1.7%.

Even with the U.S. House declaring the week of July 14 as “Crypto Week” to advance legislation such as the GENIUS Act and Anti-CBDC Surveillance State Act, prices showed little reaction. Dogecoin fell 2.5%, and meme token $TRUMP lost 1.6%.

High interest rates and regulatory uncertainty continue to weigh heavily on the crypto sector, limiting upside in both Bitcoin and altcoins.