Investing.com-- Bitcoin fell marginally on Friday and was headed for a muted weekly performance as speculation over trade tariffs under U.S. President Donald Trump pressured risk appetite, while anticipation of key inflation data also spurred caution.
The world’s largest cryptocurrency clocked wild price swings this week, having initially slumped below $100,000 as the release of a potentially disruptive Chinese artificial intelligence model sparked a broad sell-off in global risk markets.
But Bitcoin rebounded sharply from these losses, although it steadied within a trading range of between $100,000 and $105,000 over the past three days.
Comments from Trump over imposing trade tariffs on several major countries spurred some pressure on crypto prices, as did caution before the release of PCE price index data- the Federal Reserve’s preferred inflation gauge.
Bitcoin fell 0.3% to $104,630.0 by 08:58 ET (13:58 GMT).
Trump threatens 100% tariffs against BRICS
Trump on Thursday evening threatened to impose 100% tariffs against the BRICS group of countries, warning them against their attempts to create their own currency and pivot away from the U.S. dollar.
This came just hours after he said that his 25% tariffs on Canada and Mexico were likely to go into effect from Saturday. Trump has also threatened to impose a 10% duty on China from Saturday.
The President’s comments soured risk appetite, given that tariffs stand to disrupt global trade and economic growth. Retaliatory tariffs from the targeted countries could also mark the start of a new global trade war.
Fears of trade tariffs largely overshadowed optimism over friendlier crypto regulations under Trump, although the President’s recent executive order provided limited information on this front.
El Salvador passes Bitcoin law amendment under IMF deal
El Salvador lawmakers quickly approved a bill scaling back the country’s Bitcoin law this week, as part of a $1.4 billion funding deal struck with the International Monetary Fund.
The country had adopted Bitcoin as legal tender in 2021. But this provided little support the the El Salvadorian economy, amid little actual adoption and plans for debt backed by its Bitcoin holdings having largely fallen through.
This week’s reform, which now allows El Salvador access to IMF relief, makes Bitcoin acceptance voluntary for the private sector, which was a major point raised in the IMF debt deal.
Elon Musk's father joins the memecoin bandwagon, token surges 440%
Errol Musk, father of Elon Musk, is reportedly exploring the launch of a memecoin project called Musk It $MUSKIT, aiming to raise up to $200 million to fund a for-profit think tank, the Musk Institute, he said in an interview with Fortune.
His move follows a resurgence in retail investor interest in memecoins, sparked by the recent launches of Donald Trump’s $TRUMP token on January 18 and Melania Trump’s $MELANIA token on January 19, both on the Solana network.
Musk It was quietly introduced on December 12, 2024, by a Middle Eastern crypto firm but has struggled to gain momentum. However, following Errol Musk's interview, the token surged roughly 440% in the past 24 hours, according to CoinGecko data.
Errol Musk said that his son Elon has no involvement in the project.
Crypto price today: altcoins muted as PCE data looms
Broader crypto prices mostly tread water on Friday, with traders also hunkering down before key U.S. PCE price index data for December.
The reading is the Fed’s preferred inflation gauge, and is likely to factor into the outlook for interest rates. The print comes just days after the Fed left interest rates unchanged and said more rate cuts were unlikely in the near-term.
World no.2 crypto Ether rose 3% to $3,355.31, while XRP traded flat at $3.097.
$TRUMP slid 4.2% amid continued volatility, with the memecoin now trading about 60% below its post-launch peak.
Solana, Cardano, and Polygon moved in a flat-to-slightly up range, while Dogecoin climbed 0.7%.
Ambar Warrick contributed to this report.