Bitcoin prices declined on Friday after surrendering recent gains, as traders braced for the upcoming implementation of U.S. President Donald Trump’s trade tariffs and markets scaled back expectations of near-term interest rate cuts — adding pressure on digital assets.
Broader cryptocurrencies also pulled back, despite U.S. lawmakers announcing the long-awaited “Crypto Week,” which will see the discussion of major regulatory bills for the sector.
Bitcoin, the world’s largest cryptocurrency, dropped 0.9% to $108,933.4 by 09:22 GMT, after climbing as high as $110,500 overnight.
Those initial gains were driven by optimism surrounding progress in U.S.–China trade talks, which helped the coin break out of a narrow trading range between $103,000 and $108,000 that had persisted for nearly a month.
Despite the retreat, Bitcoin remained on track for a second consecutive weekly gain.
However, the positive momentum faded under renewed concerns over steep U.S. tariffs and a diminished likelihood of an imminent rate cut. Adding to the pressure was Congress’ approval of Trump’s sweeping tax and spending package, which is estimated to significantly expand the national debt in the coming years.
Trading volumes were expected to remain subdued Friday amid the U.S. Independence Day holiday.
Bitcoin retreats amid tariff and rate cut concerns
Bitcoin pulled back from Thursday’s highs after Trump announced plans to begin sending letters to major economies outlining the new tariff regime, starting Friday.
According to Trump, between 10 and 12 countries would receive the letters, detailing tariffs ranging from 10% to 20%, and potentially as high as 60%–70%, set to take effect on August 1.
His remarks sparked renewed concerns over the economic fallout of such measures, which could cause major disruptions to global trade.
Analysts noted that the lack of clarity surrounding U.S. trade policy has also been a key reason why the Federal Reserve has held interest rates steady. Fed Chair Jerome Powell recently warned of the inflationary risks such tariffs could trigger.
Meanwhile, Thursday’s stronger-than-expected U.S. jobs report reduced market bets on a July rate cut, and expectations for September easing were also scaled back.
It’s worth noting that digital assets typically react negatively to higher interest rates, as they reduce the liquidity available for riskier investments.
Crypto market softens despite legislative buzz in Washington
The broader crypto market saw modest declines Friday, despite the announcement of Crypto Week in the U.S. Congress — which, so far, has failed to spark an immediate rebound in prices.
Members of the House of Representatives declared that the week of July 14 will be dedicated to digital asset legislation, with three major bills expected to advance:
The GENIUS Act: A comprehensive framework for regulating stablecoins
The CLARITY Act
The Anti-CBDC Surveillance State Act
Speaker of the House Mike Johnson said in a Thursday statement: “House Republicans are taking decisive action to implement President Trump’s full digital asset and cryptocurrency agenda.”
Was Bitcoin’s move to $110,000 a breakout or a bull trap?
With Bitcoin hovering below the $110,000 threshold, traders remained divided over the coin’s next move.
Prominent trader Byzantine General posted a chart suggesting the coin may be gearing up for a breakout above $112,000, citing futures data. He noted that rising open interest alongside price movement often precedes sharp price expansions.
However, market order books began to reflect increasing sell pressure. A large block of sell orders appeared around the $110,000 level — often interpreted as profit-taking or resistance from major holders.
On the other hand, trader KillaXBT noted that Bitcoin had recently swept liquidity above resistance and below support, only to reverse quickly — a behavior typical of “fakeouts” aimed at liquidating leveraged traders before a genuine directional move.
