Bitcoin saw an uptick early this week, climbing near $85,000 as growing inflation expectations and mixed messages from the White House on tariffs sent ripples through financial markets. Investors are now closely watching signals from the Federal Reserve for insight into the U.S. economy’s direction.
As of Monday, Bitcoin was trading at approximately $84,950, marking a 1.5% daily gain, according to CoinGecko. Other major cryptocurrencies also saw modest gains, with Ethereum rising 3.4% to $1,650 and Solana up 2.4% to $131.
The gains followed a weekend of volatility driven by geopolitical and economic developments. The Biden administration’s recent clarification that certain products, like smartphones and computer chips, would be excluded from new tariffs offered a temporary boost to investor sentiment. However, the mood cooled slightly after President Trump insisted no one was entirely exempt from the new trade measures, signaling that broader levies on electronics remained on the table.
Meanwhile, consumer sentiment reflected rising unease about inflation and job security. A new report from the Federal Reserve Bank of New York revealed that Americans expect inflation to hit 3.6% over the next year. This marks a growing concern among households—especially those earning under $50,000 annually—about potential job losses and economic instability. Nearly 44% of respondents in the survey said they believe unemployment will be higher a year from now, the highest figure since April 2020.
Despite the mixed economic signals, equities also ended the day higher. The Nasdaq and S&P 500 both posted solid gains, reflecting broader market resilience. Shares of Coinbase rose 1.4% to $178, while Strategy shares climbed 4.3% to $312, according to Yahoo Finance.
Market participants now await comments from Federal Reserve Chair Jerome Powell, who is set to speak on Wednesday. His remarks could offer clarity on the central bank’s stance on interest rates and its outlook on a potential recession.
Carlos Guzman, a research analyst at GSR, told Decrypt that Powell’s words will carry significant weight. “Investors are closely watching whether the Fed sees a need for further rate cuts or if the economy is stable enough to stay the course,” he said.
He noted that while Trump’s recent 90-day suspension of most tariffs has reduced recession fears, expectations of further rate cuts have still increased. “There’s an undercurrent of caution. If the global economy shows more signs of strain, we could see more aggressive action from central banks,” Guzman added.
For now, Bitcoin and other cryptocurrencies continue to benefit from the broader uncertainty, as investors look toward decentralized assets as a hedge against inflation and policy shifts.