Key moments

• Bitcoin fell from the $83,000 threshold on Friday.
• The cryptocurrency’s price remains unstable amid global market struggles tied to the Trump administration’s tariff policies.
• Bitcoin ETFs shed another $99.86 million in net outflows, with Grayscale’s GBTC seeing the largest withdrawals.

Uncertainty Weighs on Bitcoin’s Price

Bitcoin experienced sharp fluctuations on Friday, marked by declines below $83,000 and a 1.90% climb toward $85,000 that saw its price hit $84,708. This volatility followed Thursday’s turbulence when Bitcoin’s price tumbled under $82,000, and Bitcoin ETFs experienced substantial outflows. At press time, markets continue to navigate the consequences of President Trump’s Wednesday tariff announcement and the evolving expectations regarding Federal Reserve interest rate adjustments.

The cryptocurrency’s upward trajectory coincided with increasing speculation that the Federal Reserve may enact more aggressive interest rate cuts than previously anticipated. Traders are now betting on a potential 100 basis point reduction throughout the year, double the Fed’s March projections. In addition, Arthur Hayes, co-founder of BitMEX, has voiced strong support for Trump’s tariff policies, believing they will ultimately benefit Bitcoin.

Hayes argued that the tariffs, which include a 10% baseline on all imports and significantly higher rates for major trading partners, will lead to global economic imbalances. According to Hayes, the resulting monetary stimulus could serve as a catalyst for Bitcoin’s price appreciation, as evidenced by previous surges. Hayes outlined several factors contributing to his bullish outlook, including a weakening US Dollar Index, a potential Federal Reserve rate cut, and a weaker Chinese Yuan.

The erratic crypto landscape also witnessed ETF net outflows this week. Bitcoin ETFs, in particular, experienced outflows of $99.86 million. Grayscale’s GBTC led the outflows, while BlackRock’s IBIT was the only ETF to record inflows. This fluctuation highlights the market’s sensitivity to macroeconomic developments and investor sentiment.