Investing.com-- Bitcoin climbed 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 climbed 2.1% to $97,311.0 by 4:58 p.m. ET (21:58 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 rises despite tariff fears, US inflation eyed
Bitcoin’s pullback over the weekend 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.
The 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.
Strategy buys 7,633 more Bitcoin
Bitcoin treasury firm Strategy, formerly MicroStrategy, bought 7,633 BTC between Feb. 3 and Feb. 9, spending $742.4 million at an average price of $97,255 per bitcoin, according to an SEC filing on Monday.
The company now holds 478,740 BTC, valued at over $46 billion. Co-founder and executive chairman Michael Saylor said that Strategy’s total bitcoin purchases amount to approximately $31.1 billion, with an average cost of $65,033 per bitcoin. This gives the firm control of more than 2.2% of bitcoin’s fixed 21 million supply.
The latest acquisitions were funded through the sale of 516,413 shares of its class A common stock for $179 million and 7.3 million shares of its 8.00% Series A Perpetual Strike Preferred Stock for $563.4 million.
As of Feb. 9, Strategy reported having $4.17 billion in shares still available for sale under its “21/21 plan,” which aims to raise $42 billion in equity and fixed-income securities to fund further bitcoin purchases.
Crypto price today: altcoins track Bitcoin’s slight recovery
Most altcoins were also slightly higher, in line with Bitcoin’s movement. They moved in narrow ranges, reflecting increased caution towards riskier assets.
World no.2 crypto Ether added 4.1% to $2,660.07 on Monday after losing nearly 15% last week.
World no. 3 crypto XRP rose 3.4% to $2.442, after an over 20% weekly slump.
Solana jumped 1.9% and Polygon traded 4.7% higher, while Cardano advanced 6.6%.
Among meme tokens, Dogecoin edged 4.7% higher, while $TRUMP rose 2.5%.
Ayushman Ojha contributed to this report.