Investing.com-- Bitcoin was largely unchanged on Monday after logging a sharp drop over the weekend as risk sentiment was battered by new trade tariffs by U.S. President Donald Trump, while traders were also cautious before key inflation data.
The world’s largest cryptocurrency was up 0.1% at $97,114.6 by 01:54 ET (06:54 GMT).
Bitcoin had lost nearly more than 4% last week, as escalating U.S.-China trade tensions sparked liquidity fears, and kept investors away from speculative assets like crypto.
The prospect of sticky U.S. inflation and high-for-longer U.S. interest rates also pressured crypto, largely offsetting optimism over friendlier regulations under Trump.
Bitcoin traced declines in broader risk-driven markets, which fell after Trump on Sunday said he will impose 25% tariffs on all U.S. imports of aluminum and steel.
This came just days after Trump's 10% tariffs on China took effect. Beijing struck back retaliatory tariffs on key U.S. exports—including coal, liquefied natural gas , crude oil , and agricultural machinery—which began on Monday.
While Bitcoin is often touted as a hedge against traditional market volatility by proponents of the crypto, it has so far largely failed to retain its value in times of increased market strife. Gold, on the other hand, hit a series of record highs in the past week.
The dollar also firmed after Trump's tariffs, as traders bet that tariffs will underpin U.S. inflation in the coming months, keeping interest rates high for longer.
Focus is now on U.S. Consumer Price Index (CPI) data due on Wednesday.
Analysts anticipate a 2.9% year-over-year increase, mirroring December's figures, which showed inflation remaining largely sticky after falling through most of 2024.
Federal Reserve officials have cautioned that sticky inflation will give them less impetus to cut interest rates. Some policymakers have also expressed uncertainty over the inflationary impact of Trump's policies.
Most altcoins were also subdued, in line with Bitcoin’s movement. They moved in narrow ranges, reflecting increased caution towards riskier assets.
World no.2 crypto Ether fell 1.1% to $2,635.09 on Monday after losing nearly 15% last week.
World no. 3 crypto XRP declined 2.8% to $2.3943, after an over 20% weekly slump.
Solana was 1% weaker and Polygon lost 1.8%, while Cardano fell 1.5%.
Among meme tokens, Dogecoin fell 2.3%, while $TRUMP slid 9% to a new record low.