Bitcoin price today: falls below $86k ahead of Trump reciprocal tariffs; PCE data
Investing.com– Bitcoin fell on Friday amid a broader risk-off mood as global trade tensions escalated ahead of U.S. reciprocal tariffs, while investors cautiously awaited a crucial inflation report due later the day for clues on the Federal Reserve’s interest rate trajectory.
The world’s largest cryptocurrency declined 1.6% to $85,910.50 by 01:23 ET (05:23 GMT).
Trump auto tariffs escalate trade war; Bitcoin falls amid broader sell-off
President Donald Trump on Wednesday announced the imposition of a 25% tariff on all foreign-made cars and auto parts, effective April 2.
In response, Canadian Prime Minister Mark Carney declared that the longstanding trade relationship with the U.S. is “over,” advocating for a comprehensive renegotiation of trade agreements between the two nations.
Carney vowed to retaliate if U.S. President Donald Trump enforces new auto tariffs.
Trump also has plans to enforce separate global reciprocal tariffs on April 2, aiming at nations with major trade imbalances with the U.S.
These developments have heightened investor concerns about an all-out global trade war, leading to a broader risk-off sentiment in financial markets.
This led to a significant sell-off in global stock markets. Major U.S. stock indexes closed lower on Thursday, while most Asian stock indexes slumped early Friday.
In such environments, investors typically move away from volatile assets like cryptocurrencies, favoring traditional safe-haven assets such as gold.
Gold was trading at a record high in Asian trading on Friday.
US PCE inflation data in focus for Fed rate outlook clues
Investors are also exercising caution ahead of the release of the Personal Consumption Expenditures (PCE) price index data on Friday.
The Fed held interest rates steady at 4.25% to 4.5% during its March 19 meeting, citing increased uncertainty in the economic outlook.
The central bank has projected two rate cuts this year to support economic growth. However, recent tariff policies introduced by President Trump have complicated the inflation landscape.
Crypto price today: most altcoins drop, Ether declines 5%; Polygon slumps 9%
Most altcoins saw steeper declines than Bitcoin.
World no.2 crypto Ethereum slumped 4.8% to $1,926.96.
World no. 3 crypto XRP dropped 4.2% to $2.2629.
Solana declined 3%, and Cardano dropped 3.5%, while Polygon plunged 9%.
Among meme tokens, Dogecoin fell 6.2%, while $TRUMP plummeted 8%.