Americas Crypto Market Update: Bitcoin's Price Drops Amid Trade Policy Uncertainty

By Francisco Rodrigues (All times ET unless otherwise stated) The cryptocurrency market experienced a decline on Friday due to renewed concerns over US trade policies, which had a more significant impact than positive news for the industry. The CoinDesk 20 Index, a broad measure of the crypto market, fell by 4.4% to 3,129 in the past 24 hours. Although bitcoin slipped 2.8% to approximately $105,300, it is essential to note that the largest cryptocurrency has remained above $100,000 for over 20 consecutive days, indicating persistent investor demand. The sell-off occurred after a US appeals court reinstated trade tariffs that had been blocked by a lower court, which had deemed them illegal. This reversal rekindled concerns about an extended trade war. In an interview, Treasury Secretary Scott Bessent mentioned that negotiations with China were 'a bit stalled,' further exacerbating the uncertainty. According to Darren Nathan, head of equity research at Hargreaves Lansdown, 'the only certainty in global trade right now is uncertainty.' Additionally, it was reported that Trump urged Fed Chair Jerome Powell to lower interest rates during a meeting at the White House, contributing to the macroeconomic turmoil. Despite the uncertainty, bitcoin's appeal has been evident. The BlackRock iShares Bitcoin Trust (IBIT) is experiencing record-low volatility and attracting billions of dollars from investors. Spot bitcoin ETFs have seen a total of $5.85 billion in net inflows this month, up from $2.97 billion in April, based on SoSoVale data. The momentum is further supported by Spanish banking giant Santander considering offering retail clients access to cryptocurrencies and Panama's proposal to accept bitcoin as payment for transit fees in its canal. The focus now shifts to the core PCE inflation data, a crucial indicator for Fed policy. A high reading later this morning could dampen hopes for rate cuts, potentially weighing on risk assets further. As Hargreaves Lansdown's head of equity research noted, 'any sign of worsening inflationary pressure is likely to impact expectations for further interest rate cuts by the Fed this year, which would be a concern given the inertia building in the economy.' However, 'the numbers should be taken with a grain of salt, considering they have yet to feel the full impact of tariffs.' For now, bitcoin's ability to maintain the $100,000 psychological threshold remains a key milestone amid the uncertainty. Remain vigilant! Key Events to Watch Token-Related Events Conferences Token Talk By Shaurya Malwa Derivatives Positioning Market Trends Bitcoin Statistics Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether