Cryptocurrencies Decline Ahead of Pivotal Week for U.S. Economic Policy

This week will be pivotal for U.S. economic policy. Bitcoin BTC/USD fell 2.5% to $85100, Ethereum ETH/USD dropped nearly 6% to $1895.

Cryptocurrencies declined on Friday as investors remained cautious ahead of a pivotal week for U.S. economic policy.

What Happened: Bitcoin BTC/USD fell 2.5% to $85,100 over the past 24 hours, continuing Thursday's downtrend.

The broader market fared worse—Ethereum ETH/USD dropped nearly 6% to $1,895, XRP XRP/USD declined by 5.5% to $2.22, Dogecoin DOGE/USD lost about 7% to $0.1815.

The pullback comes as traders weigh the market impact of President Donald Trump's proposed reciprocal tariffs on imported vehicles, set to go into effect on April 2.

At the same time, investors are awaiting the release of core inflation data from the U.S. Bureau of Economic Analysis, particularly the Personal Consumption Expenditures (PCE) index—closely watched by the Federal Reserve.

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Why It Matters: “The upcoming tariff policy decision in April will be a key factor in shaping market sentiment," said Ryan Chow, CEO of Solv Protocol. "Until there is more clarity, volatility is likely to persist.”

Despite market headwinds, Bitcoin-focused exchange-traded funds have continued attracting investor capital.

Over the past two weeks, these spot ETFs recorded nearly $1 billion in net inflows.

In contrast, Ethereum-based funds have seen outflows of roughly $115 million over the same period.

Chow told Benzinga that macro conditions remain highly influential, especially as the Fed considers future interest rate adjustments. "Bitcoin has been trading largely in line with equities," he said. "Any downside pressure on equities will likely have a similar, if not amplified, effect on crypto assets."

Economic data expected Friday and into the weekend—particularly Q4 GDP growth figures and the Core PCE Price Index—could determine near-term trends.

Many investors have already priced in expectations of rate cuts later this year, but any surprises could reset those expectations.

While the second quarter is typically a bullish period for cryptocurrencies, this cycle presents new challenges.

"The current landscape—uncertainty around Fed policy and Trump's tariff strategy—creates a challenging environment for risk assets," Chow said. "Once these macro uncertainties start to clear, the market will likely gain stronger conviction and direction."

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