Investing.com-- Bitcoin remained under pressure on Friday, heading for its second consecutive weekly decline as global risk appetite weakened following U.S. President Donald Trump’s announcement of new tariffs earlier this month.
Bitcoin was down 1.6% at $96,723.5 by 01:21 ET (06:21 GMT) and was on track for a nearly 3% loss for the week. It lost 4% in the prior week.
Trading activity remained subdued, with Bitcoin fluctuating within a narrow range in recent sessions, reflecting investor caution against an uncertain macroeconomic backdrop.
Market sentiment took a hit on Feb. 1 after Trump’s tariff announcement fueled concerns over global trade tensions.
The move triggered a broader risk-off shift across financial markets, with equities retreating and investors turning to safer assets. Bitcoin, often seen as a speculative asset, mirrored the weaker sentiment.
The cryptocurrency market has also been grappling with a lack of clear catalysts to drive prices higher.
Macroeconomic uncertainties, including expectations around U.S. Federal Reserve policy and global growth concerns, have also kept traders on edge.
Despite recent weakness, Bitcoin is still up substantially over the past year, supported by growing mainstream adoption and expectations of lenient crypto regulations under Trump’s administration.
However, analysts warn that near-term price action may remain volatile, particularly as investors assess economic policy developments and broader financial market trends.
Traders now await the U.S. January nonfarm payrolls report to further gauge the Fed’s rate outlook.
Franklin Templeton (Franklin Resources Inc (NYSE: BEN )) has filed with the U.S. Securities and Exchange Commission (SEC) to launch a new crypto index ETF, aiming to provide investors with exposure to Bitcoin and Ether.
The firm has indicated the possibility of including additional cryptocurrencies in the future, pending regulatory approval.
This move follows growing institutional interest in digital assets, especially after the SEC's approval of Bitcoin and Ether ETFs. Other asset managers are also seeking approval for funds involving cryptocurrencies like Solana and XRP.
The SEC's decision on the application will determine the fund's launch and its potential impact on the broader cryptocurrency investment market.
Most altcoins fell, with much sharper losses than Bitcoin, as the risk-off mood persisted.
World no.2 crypto
Ether
fell 5.4% to $2,677 on Friday and was set to plunge 14% this week.
World no. 3 crypto
XRP
declined 7.1% to $2.2903, on track for a 20% weekly slump.
Solana was 6% weaker, and Polygon lost 7.9%, while Cardano fell 6.2%.
Among meme tokens, Dogecoin fell 5.8%.