Bitcoin steadies after last week’s drop amid U.S. economic concerns and looming tariffs

Bitcoin steadies after last week’s drop amid U.S. economic concerns and looming tariffs

Bitcoin remained largely unchanged on Monday, showing signs of stabilization following last week’s sharp decline, which was driven by growing concerns over a slowdown in U.S. economic growth and the upcoming implementation of new trade tariffs — both factors that have dampened risk appetite among investors.

 
The broader cryptocurrency market posted modest gains as it began to recover from the prior week’s risk-off sentiment, though some profit-taking activity still lingered.

As of 4:37 p.m. Moscow time, Bitcoin was trading at $114,310, up 0.1% on the day.

Despite recent buying interest from institutional holders, Bitcoin has lost nearly 3% over the past five days.

 
The downturn was partly triggered by weaker-than-expected U.S. jobs data released on Friday. July’s nonfarm payroll numbers significantly missed estimates, causing Bitcoin to drop alongside major Wall Street indexes.

Further concern arose after downward revisions to job growth figures from previous months, followed by President Donald Trump’s abrupt dismissal of Erica McEntarfer, head of the Bureau of Labor Statistics — a move that raised questions about the future reliability of U.S. economic reporting.

 
While weaker jobs data increased the likelihood of interest rate cuts by the Federal Reserve, it also underscored the growing signs of a cooling U.S. economy.

 
Adding to the uncertainty, a new round of U.S. tariffs targeting key trade partners is expected to take effect this week, potentially disrupting global markets further.

 
Although cryptocurrencies are not directly impacted by labor statistics or trade policies, shifting investor sentiment can strongly affect demand for speculative assets like Bitcoin. Over the long term, however, lower interest rates may ultimately support crypto valuations.