Investing.com-- Bitcoin retreated slightly on Friday as uncertainty over U.S. interest rates and higher trade tariffs kept traders largely averse towards crypto markets.
The world’s biggest cryptocurrency fell 3% to $84,094.1 by 4:34 p.m. ET (20:34 GMT).
Strategy raises $711 million to fund more Bitcoin purchases
Strategy, formerly MicroStrategy, is likely preparing to make another significant Bitcoin purchase after completing an upsized offering of its new preferred stock.
According to a Friday announcement, the company raised about $711.2 million by selling 8.5 million shares of its 10% Series A Perpetual Preferred Stock at $85 per share, exceeding its initial target of $500 million.
With more than 499,200 bitcoin already on its balance sheet, the upcoming acquisitions are expected to push Strategy’s holdings past the 500,000 mark.
Bitcoin pressured by rates, tariff uncertainty
Losses in Bitcoin and broader cryptos came largely in tow with Wall Street, as risk appetite remained weak.
Traders were seen scaling back bets on any interest rate cuts by the Federal Reserve in the near-term, especially after the central bank kept rates steady this week and signaled heightened uncertainty over the U.S. economy.
The Fed forecast higher inflation and sluggish growth in 2025, while also flagging uncertainty over the impact of Trump’s tariff policies.
Trump had earlier in March flip-flopped on plans for tariffs against Canada and Mexico, but has kept up his threats of imposing reciprocal tariffs against major trading partners by early-April.
Trump also repeatedly called on the Fed to cut interest rates, although the central bank has signaled little intent to do so in the near-term. The dollar firmed on Thursday and Friday, recouping all losses made in the immediate aftermath of Wednesday’s Fed decision.
Increased economic uncertainty weighed heavily on crypto prices, given that speculative assets tend to underperform in times of increased economic strife.
Crypto price today: Altcoins rebound short-lived, track Bitcoin lower
Broader crypto prices also retreated on Friday after a short-lived rebound earlier this week. World no.2 crypto Ether fell back below $2,000, coming back in sight of lows last seen in 2021.
XRP fell 2% to $2.40. The cryptocurrency was trading well below a near two-week high it hit this week after the SEC dropped its long-running case against issuer Ripple.
The SEC decision was widely expected, as Trump overhauled the agency’s leadership with pro-crypto picks. The SEC had earlier dropped cases against exchanges Coinbase (NASDAQ:COIN) and Kraken.
Other altcoins also retreated on Friday, and were set for a middling week. Cardano lost 1.4%, while Solana gained 0.1%, and Polygon fell 2.9%.
Among meme tokens, Dogecoin shed 0.6%, while $TRUMP slipped 1%.
Ambar Warrick contributed to this report.