Bitcoin Holds Steady as Trump Tariffs Rattle Markets

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Bitcoin posted slight gains on Thursday but remained locked in a tight trading range, as rising economic uncertainty and renewed U.S. trade tariffs weighed heavily on investor sentiment. The world’s largest cryptocurrency climbed 1.3% to $116,790 by mid-morning, though it failed to break past key resistance levels seen earlier this month.

The muted movement reflects a broader market hesitation amid the rollout of reciprocal tariffs announced by former U.S. President Donald Trump. Effective Thursday, the new levies target major global economies with rates ranging from 10% to 50%. Trump also revealed plans to impose a 100% tariff on all semiconductor imports, expected to take effect in the coming weeks, a move that reinforces his aggressive push to bring critical manufacturing back to American soil.

Although digital assets like Bitcoin are not directly impacted by tariffs, their highly speculative nature makes them susceptible to broader shifts in market sentiment. Over the past week, Bitcoin has remained rangebound between $110,000 and $118,000, following a sharp decline from its mid-July highs above $123,000. Even consistent buying from institutional players like Strategy (NASDAQ: MSTR) and Japan’s Metaplanet Inc. (TYO: 3350) has not been enough to revive bullish momentum.

Investors appear increasingly cautious amid signs of slowing global growth. Last week’s disappointing U.S. payroll numbers heightened expectations of an interest rate cut by the Federal Reserve. However, they also triggered fresh concerns about the underlying strength of the American economy, casting a shadow over risk assets like cryptocurrencies.

Further adding to the subdued sentiment, Bitcoin exchange-traded funds (ETFs) experienced four consecutive days of outflows totaling nearly $1.5 billion, according to market tracker SoSoValue. While a small inflow was reported on Wednesday, it did little to offset the previous losses, suggesting that profit-taking and risk aversion are still in play.

In related news, blockchain firm Ripple is expanding its footprint in the stablecoin space with a $200 million acquisition of U.S.-based payments platform Rail. As reported by Reuters, the deal is expected to close later this year, pending regulatory approval, and aims to strengthen Ripple’s infrastructure for cross-border payments.

Ripple, known for its XRP token and recently launched RLUSD stablecoin, sees the acquisition as a strategic move to dominate stablecoin transactions. “As regulations become clearer and the space has grown and matured, this opportunity for stablecoin payments is ripe,” Ripple President Monica Long told Reuters.

As political and economic shifts continue to shape global markets, Bitcoin’s sideways trend underscores investor hesitation in an increasingly uncertain environment. With major policy changes on the horizon, digital assets are likely to remain sensitive to the broader macroeconomic narrative.