Bitcoin falls to $115.5K amid tariffs; payroll data awaited

• Bitcoin drops 2.5% Friday, week down approximately 2%, priced at $115,540; Strategy’s purchase minimally impacts.

• Trump's tariffs spark caution; Fed steady on rates, pressuring Bitcoin and speculative assets.

• Cryptos slide Friday; Ether down 4.4%, XRP 5.8% weekly amid Fed watch.

Bitcoin experienced a 2.5% drop on Friday, and might decline approximately 2% over the week as investors engaged in profit-taking amidst growing worries about U.S. trade tariffs and interest rate policies.

By 00:45 ET (05:45 GMT), the world’s largest cryptocurrency was priced at $115,540.9, struggling to regain momentum after reaching record highs earlier in July. Despite a significant Bitcoin acquisition by Strategy (NASDAQ: MSTR), the top corporate Bitcoin holder, the digital asset’s price showed little boost. Strategy also posted stronger-than-expected earnings for the June quarter, but its shares barely moved in response.

The decline in Bitcoin followed U.S. President Donald Trump’s recent executive order imposing new tariffs on numerous trading partners, set to commence in seven days—slightly beyond the original August 1 deadline.

Investors remain cautious as the specifics of these tariffs are still unfolding, despite Washington negotiating last-minute trade agreements with several major economies. These trade tensions have contributed to the Federal Reserve’s cautious stance on interest rates, which it plans to hold steady until the inflationary impacts of tariffs are clearer. The Fed’s comments dampened risk sentiment during the week, impacting speculative assets like cryptocurrencies.

Although tariffs do not directly influence cryptocurrencies, their broader market sentiment effect weighs on Bitcoin and other speculative investments. Additionally, expectations for prolonged higher interest rates tend to reduce the attractiveness of high-risk assets such as Bitcoin.

Other cryptocurrencies followed Bitcoin’s downward trajectory on Friday, with many facing significant weekly declines amid profit-taking and diminished risk appetite.

• Ethereum (Ether), the second-largest crypto by market cap, fell 4.4% to $3,688.0, and was down 1.3% this week.

• XRP decreased 4.8% to $2.9914 and suffered a 5.8% decline over this week.

• Solana and Cardano both decreased by roughly 6%, trailing a weekly loss between 7% and 11%.

• Meme coins also took hits, with Dogecoin down 6.6%, and $TRUMP falling 5.8%, totaling a 12.4% loss for the week.

Market participants are now keenly awaiting upcoming U.S. nonfarm payrolls data, which is expected to influence the Federal Reserve’s interest rate decisions. A robust labor market could reduce the likelihood of interest rate cuts, further pressuring riskier assets.