Bitcoin Slips Below $84K Amid Interest Rate & Tariff Uncertainty
Bitcoin (BTC) and broader crypto markets faced renewed selling pressure on Friday as uncertainty over U.S. interest rates and escalating trade tariffs dampened investor sentiment.
BTC slipped 0.42% to $84,065, struggling to maintain support amid heightened volatility.
Altcoins, including Ethereum (ETH) and XRP, followed suit, reversing earlier gains. XRP, which had surged after the SEC dropped its lawsuit against Ripple, pared its rally but still held onto weekly gains. Meanwhile, ETH fell below the $2,000 psychological level, tracking Bitcoin’s weakness.
While crypto markets found some relief this week, the broader downtrend in 2025 remains intact, weighed down by economic headwinds and lukewarm enthusiasm for President Donald Trump’s pro-crypto policies.
Rate & Trade Tariff Worries Weigh on Crypto Markets
Bitcoin’s losses mirrored Wall Street’s broader risk-off sentiment as traders recalibrated expectations for Federal Reserve rate cuts. The central bank held rates steady this week and flagged rising inflation risks alongside sluggish growth, delaying any immediate easing measures.
Rate Hike Uncertainty: The Fed signaled a wait-and-see approach, with no clear timeline for rate reductions.
Dollar Strength: The U.S. dollar rebounded, recovering losses from the post-Fed decision drop, pressuring BTC and altcoins.
Trade Tariffs: Trump’s inconsistent stance on tariffs, particularly against Canada, Mexico, and key trading partners, further fueled economic uncertainty.
Trump has repeatedly urged the Fed to cut rates, but policymakers remain reluctant, prioritizing inflation control over growth stimulation. This uncertainty weighed on speculative assets like Bitcoin, which tend to underperform in uncertain economic environments.
Altcoins Reverse Gains, XRP Holds Firm Despite Pullback
The broader crypto market saw a short-lived rebound before tracking Bitcoin lower.
Ethereum (ETH): Fell below $2,000, nearing its lowest levels since 2021 after failing to hold support.
XRP: Held onto a 0.8% weekly gain, benefiting from Ripple’s legal victory, but still traded below recent highs.
Crypto Regulation: Trump’s overhaul of the SEC’s leadership with pro-crypto figures led to dropped cases against Coinbase and Kraken, hinting at a friendlier regulatory landscape.
While XRP initially surged after the SEC lawsuit dismissal, profit-taking and broader risk-off sentiment capped gains. Meanwhile, ETH’s decline below $2,000 signals continued selling pressure, with investors awaiting fresh catalysts for a reversal.
Bitcoin (BTC) Technical Outlook – March 21, 2025
Bitcoin (BTC) is trading at $84,065, consolidating near critical support levels. The 50-day SMA at $83,639 remains a key defensive line, preventing further losses.
A symmetrical triangle pattern is forming, indicating an impending breakout. BTC recently tested resistance at $86,600 but failed to hold, triggering a pullback.
Key Price Levels to Watch:
Support: $83,600, $81,100, $79,050
Resistance: $86,600, $88,960, $91,500
Breakout Zone: A move above $86,600 could ignite a rally toward $91,500.
A break below $83,600 could accelerate losses, exposing BTC to $81,100 and $79,050, while a sustained push above $86,600 would signal renewed bullish momentum. Traders should monitor volume spikes and macroeconomic cues for confirmation.
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