Bitcoin Retreats as Trump Tariff Uncertainty Sparks Crypto Market Volatility

Bitcoin Declines Amid Tariff Uncertainty and Profit-Taking

Bitcoin fell 1.8% to $105,580 on Friday, heading for a weekly loss as uncertainty over U.S. President Donald Trump’s trade tariffs fueled profit-taking. The cryptocurrency had reached a record high of over $111,000 last week but faced declining risk appetite due to conflicting signals on Trump’s tariff plans. A recent court ruling allowed Trump’s tariff agenda temporarily, while earlier, a federal trade court had blocked the tariffs. Trump’s legal challenges and comments on the Supreme Court’s potential involvement added to market uncertainty.

Analysts warn that prolonged legal battles over tariffs could increase market volatility and economic concerns. While revised GDP data showed the U.S. economy contracted less than initially feared, this offered limited relief to risk-driven assets like Bitcoin.

SEC Drops Binance Lawsuit, BNB Price Muted

The U.S. Securities and Exchange Commission (SEC) voluntarily dismissed its lawsuit against Binance, the world’s largest crypto exchange, and its founder Changpeng Zhao. The case, filed in June 2023, alleged trading volume manipulation, customer fund diversion, and unlawful securities trading. The dismissal, which bars the SEC from revisiting the case, reflects a shift in regulatory stance under the Trump administration.

Despite the positive news, Binance’s native token, BNB, fell 1.1% to $674.20, showing muted reaction to the developments. This contrasts with the broader market sentiment, which remains cautious amid regulatory and macroeconomic uncertainties.

Piper Sandler Sees Growing Institutional Interest in Crypto

Piper Sandler highlighted increasing institutional interest in Bitcoin and digital assets following the 2025 Bitcoin conference. Key themes include the expected passage of U.S. stablecoin legislation, which could accelerate adoption among traditional financial firms. The firm also noted stronger-than-expected corporate interest in holding Bitcoin on balance sheets.

Innovations like Bitcoin-backed bonds and gold-protected Bitcoin funds are gaining traction, with MicroStrategy’s Bitcoin strategy inspiring other companies. Political support for a Bitcoin strategic reserve also continues to grow, with Senators JD Vance and Cynthia Lummis expressing their backing.

Altcoins Track Bitcoin Lower

The broader crypto market followed Bitcoin’s decline, with major altcoins posting significant losses. Ether fell 3% to $2,584.70, while XRP dropped 5% to $2.17. Solana and Cardano declined 5% and 5.5%, respectively, and Polygon shed 4.7%. Meme tokens also suffered, with Dogecoin plunging 8.7% and $TRUMP falling 7.5%.

The crypto market remains vulnerable to macroeconomic headwinds and regulatory developments, with Bitcoin’s recent retreat underscoring the ongoing volatility in the space.