Bitcoin drops 3% to below $115,000 on tariff concerns

Bitcoin declined on Friday, capping a week of losses amid profit-taking in cryptocurrency markets, as concerns over US tariffs and rising interest rates continued to weigh on investor sentiment.

Markets are now focused on upcoming US non-farm payrolls data, which could offer further clues about the state of the American economy.

Bitcoin fell 2.5% to $115,540.9 as of 00:45 Eastern Time (05:45 GMT). The world’s largest cryptocurrency is poised to end the week with losses of nearly 2%, having failed to maintain the momentum that pushed it to record highs in mid-July.

A major purchase by Strategy — one of the largest institutional holders of Bitcoin — did little to boost prices this week. Although the company posted stronger-than-expected quarterly earnings for the June period, its stock showed little reaction.

Bitcoin drops as risk appetite weakens amid US trade policy concerns

Friday’s decline came after US President Donald Trump signed an executive order on Thursday imposing tariffs on a group of American trading partners. The tariffs are set to take effect in seven days, following the previously set August 1 deadline.

Markets are still awaiting further clarity on the tariff details, especially after Washington reached several last-minute trade agreements with major global economies.

Trump’s trade policy remains a key source of uncertainty for the Federal Reserve, which indicated this week that it would hold off on changing interest rates until the impact of the new tariffs on inflation becomes clearer.

The Fed’s comments weighed on risk appetite this week, which in turn pressured cryptocurrency markets.

While tariffs do not directly affect cryptocurrencies, they dampen overall investor sentiment, which negatively impacts speculative assets like Bitcoin.

In contrast, persistently high interest rates pose a more direct threat to Bitcoin, as they reduce the appeal of high-risk investments.

Crypto prices: Altcoins slump ahead of US jobs data

Prices of alternative cryptocurrencies (altcoins) fell sharply on Friday and are on track for steep weekly losses, amid broad profit-taking and declining demand for high-risk assets.

Anticipation ahead of US non-farm payrolls data is adding further pressure to the market, as the figures are likely to influence the Federal Reserve’s future decisions on interest rates. If the data shows continued labor market strength, the Fed would have less incentive to lower rates in the near term.