Bitcoin (BTC) prices consolidated below the $100,000 mark on Thursday, erasing less than 2% of their value throughout the day. Meanwhile, in the forex market, the GBP/USD pair lost its bullish momentum and traded below 1.2500 after posting strong gains earlier in the day on the back of positive UK economic data. These developments unfolded as US President Donald Trump announced new tariffs on some of America's trading partners, with additional levies anticipated in the coming quarters.
President Trump's tariff announcement has sparked concerns of foreign retaliation, which will be met with reciprocal levies. This cautious economic outlook has had a ripple effect across various markets. Gold, for instance, struggled to gain bullish momentum but managed to cling to modest gains above $2,900. The anticipation of further tariff announcements has kept XAU/USD steady.
The Trump administration's economic policies are gradually taking form, influencing global market sentiment. The US Dollar has benefited from the upbeat economic data and a cautious mood triggered by President Trump's hint at potential reciprocal tariffs. In response, the USD has limited the upside for various currency pairs, including the EUR/USD, which struggled to gain traction and hovered near 1.0400 during the American session.
The BTC market has been volatile, with traders closely monitoring international trade dynamics and their potential impact on digital currencies. Although BTC prices remained below the $100,000 threshold, the minor decline suggests a degree of resilience amid broader market uncertainties.
In contrast, the GBP/USD pair's earlier gains on positive UK data were overshadowed by the strengthening US Dollar. The cautious atmosphere surrounding tariff announcements further pressured the pair, causing a retreat from its bullish trajectory.
Gold's performance was similarly impacted by the broader market climate. While it managed to sustain small gains, it failed to gather significant bullish momentum due to the prevailing cautious sentiment.