Investing.com-- Bitcoin climbed on Friday, but gains remain limited as risk appetite was dented by heightened concerns over a U.S.-China trade war, which largely offset relief over President Donald Trump's postponing plans for higher tariffs.
The world’s biggest cryptocurrency came under pressure recently as the U.S. and China imposed a volley of steep trade tariffs on each other. The move drove up concerns over a bitter trade war between the world’s biggest economies, which could severely crimp growth.
Bitcoin rose 1.4% to $81,966.0 by 09:24 ET (13:24 GMT).
Bitcoin set to fall after whipsaw week on trade jitters
Bitcoin was trading down over the past week after logging wild swings on heightened uncertainty over global trade and economic growth.
The world’s biggest cryptocurrency had slumped as low as $74,000 after Trump initially showed little intent to back off from his plans for reciprocal tariffs. But Bitcoin had then rebounded sharply after Trump announced a 90-day extension to the imposition of his steep reciprocal tariffs against major U.S. trading partners.
But China was not included in this extension, with Trump instead hiking tariffs on the country to a staggering 145%, drawing ire from Beijing. China retaliated by imposing 84% tariffs on the U.S. earlier this week.
The move marked a potential escalation in a rapidly growing trade war between the world’s biggest economies, and ramped up concerns over its economic impact. Markets also grew increasingly uncertain over U.S. economic policies under Trump, given his recent flip-flopping on trade tariffs.
Losses in crypto came in tandem with a sharp sell-down in broader risk-driven markets, particularly equities. Bitcoin has moved largely in lockstep with U.S. stocks, specifically the Nasdaq, raising more questions over the crypto’s validity as a safe haven or inflation hedge.
Safe havens such as gold and the Japanese yen were the top performing assets this week.
Bitcoin was also dented this week by major corporate holder Strategy (NASDAQ:MSTR) disclosing a $5.9 billion unrealized loss on its digital asset holdings, especially following a prolonged slump in Bitcoin prices.
Several major whales were also seen mobilizing vast amounts of Bitcoin onto exchanges, potentially heralding more sale action.
Spot Bitcoin ETFs see 6th day of outflows amid tariff fears
U.S.-listed spot bitcoin ETFs recorded net outflows for a sixth straight session on Thursday, as investors continued to retreat from risk assets amid mounting tariff concerns.
Data from SoSoValue showed total net outflows of $149.6 million, with Fidelity’s FBTC leading the decline at $74.6 million. Grayscale’s GBTC also saw a significant $44.6 million in redemptions.
Other issuers, including Ark and 21Shares, Bitwise, Invesco, and Franklin Templeton, reported additional outflows.
Grayscale’s Mini Bitcoin Trust stood out as the only product to attract new capital, posting inflows of $9.87 million.
The remaining five funds, including BlackRock’s IBIT, saw no flows during the session. The cumulative net outflows over the past six days have now reached $877 million.
Crypto price today: altcoins mixed amid uncertain outlook
Broader crypto markets saw limited gains and losses amid weak risk appetite and uncertain macroeconomic outlook.
World no.2 crypto Ether fell 2.1% to $1,556.77, while XRP steadied at just under $2 but was sitting on a nearly 7% slide this week.
Cardano traded marginally down%, while Solana and Polygon climbed between 1% and 5%.
Amid meme tokens, Dogecoin added 0.6%, while $TRUMP fell 0.6% after rebounding from record lows this week.
Ambar Warrick contributed to this report.