Bitcoin Retreated on Friday Amid Trump Tariff Whipsaw, Ending a Recent Decline from Record Highs
The largest cryptocurrency, Bitcoin, experienced a downturn on Friday, with prices falling 1.8% to $105,580 by 09:54 ET (13:54 GMT). This decline occurred as heightened uncertainty over U.S. President Donald Trump’s trade tariffs led to sustained profit-taking in the crypto market.
The world’s largest cryptocurrency was set for mild weekly losses, having retreated from last week’s peaks. Despite some corporate buying action failing to lift prices, after Gamestop announced it had purchased over $500 million worth of coins, price stabilization seemed elusive. Nonetheless, the prospect of positive regulatory developments provided limited support, as the Securities and Exchange Commission (SEC) said it was dropping its lawsuit against crypto exchange Binance.
Bitcoin Faces Prolonged Market Uncertainty Due to Trump Tariff Plans
The world’s largest cryptocurrency was buffeted by vastly contrasting signals on Trump’s tariff plans. An appeals court ruling temporarily allowed Trump’s tariff agenda, following a federal trade court decision to block his tariffs early in the week. The President lashed out against the judges involved in the trade court decision, expressing hope that the Supreme Court would back his tariffs.
However, analysts warned that prolonged legal sparring over Trump’s tariffs would only increase market uncertainty surrounding their impact on the economy. Concerns over the economic effects of Trump’s tariffs have weighed heavily on risk-driven assets this year, particularly as a wide range of economic data has pointed to U.S. weakness.
This notion was somewhat offset by a revised reading on first-quarter gross domestic product (GDP), which showed the U.S. economy shrank slightly less than initially estimated. However, the ongoing uncertainty generated by Trump’s tariffs has continued to exert downward pressure on Bitcoin and other high-risk assets.
SEC Drops Binance Case, Reflecting Shift in Regulatory Tone
The SEC voluntarily dismissed its civil lawsuit against Binance, the world’s largest crypto exchange, reflecting a shift at the regulator under new management from the Trump administration. The case was initiated by former Chair Gary Gensler in June 2023 on allegations of artificially inflated trading volumes, diverted customer funds, and unlawfully facilitating the trading of several tokens that should have been registered as securities.
The SEC dropped its action against Binance and founder Changpeng Zhao with prejudice, which means it cannot pursue the case again. This move coincides with Binance’s November 2023 guilty plea to violating federal anti-money laundering laws and comes on the heels of a $4.32 billion penalty imposed on the exchange.
Despite this development, Binance’s token, BNB, displayed little reaction to the SEC’s announcement, falling only 1.1% to $674.20.
Piper Sandler Sees Rising Institutional Interest in Crypto for 2025
Piper Sandler’s analysts left the 2025 Bitcoin conference with a more optimistic view on the momentum building across Bitcoin and digital assets. They highlighted several key developments that could accelerate broader adoption, particularly among traditional financial institutions.
One major theme was the expected passage of stablecoin legislation in the U.S., which Piper believes "will likely be a stepping stone for market structure legislation and could set off a domino effect of Bitcoin/digital asset adoption among traditional financial firms." The firm also noted that corporate interest in holding Bitcoin on balance sheets is stronger than previously assumed.
Other takeaways included increasing investor demand for Bitcoin-linked products, growing push to tokenize traditional financial assets to improve liquidity and efficiency, and the rise of innovations like Bitcoin-backed bonds and gold-protected Bitcoin funds. On the political front, both Senator JD Vance and Senator Cynthia Lummis reiterated their support for establishing a Bitcoin strategic reserve.
Crypto Price Today: Altcoins Track Lower
Losses in Bitcoin spilled over into broader crypto markets. Other leading cryptocurrencies mirrored the declines suffered by Bitcoin. The second-ranked cryptocurrency, Ether, dropped over 3% to $2,584.70, while XRP lost nearly 5% to $2.17.
Solana and Cardano were each down by more than 5%, followed closely by losses of around 4.7% in Polygon. Furthermore, meme tokens suffered significant downturns, with Dogecoin plummeting nearly 9% and $TRUMP sliding over 7%.
In Conclusion, despite a recent rally to record highs, Bitcoin retreated on Friday amid heightened uncertainty surrounding Trump’s tariff policies and lingering concerns over the economic impact of his tariffs plans. Regulatory momentum provided limited support as the SEC dropped its case against Binance. Meanwhile, Piper Sandler optimistically viewed institutional interest in crypto markets for 2025, citing key drivers such as expected passage of stablecoin legislation and increasing investor demand for related products.
