Bitcoin climbed on Friday after U.S. President Donald Trump’s warned of imposing reciprocal tariffs on many countries next week marked a blow to sentiment on risk assets including cryptos.

Bitcoin fell 1% % at $95,853.0 by 4:52 p.m. ET (21:52 GMT), to remain on track for a loss for the week. It lost 4% in the prior week.

Trump warns of reciprocal tariffs on many countries next week

Bitcoin fell along with broader equity markets as President Donald Trump warned on Friday of plans to impose tariffs next week on U.S. imported goods equal to the rates that trading partners impose on American exports, Reuters reported Friday, citing sources.

While it wasn't clear which countries would be targeted, the news stoked fresh fears about a brewing global trade war, further curbing risk sentiment.

Nonfarm payrolls comes in light

the Bureau of Labor Statistics (BLS) reported that the U.S. economy added 143,000 jobs in January, down from a revised 307,000 in December. Economists had expected a gain of 169,000. Revisions to November and December figures totaled 100,000 additional roles.

The unemployment rate edged down to 4.0% from 4.1%, while average hourly earnings rose 0.5%, exceeding forecasts of 0.3%. The BLS noted that the establishment survey had been revised due to annual benchmarking and seasonal adjustment updates, while the household survey reflected new population estimates.

Before the report's release, analysts had warned that recent wildfires in Los Angeles and cold weather could have skewed the data, but the BLS said the events had "no discernable effect" on the data.

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The latest figures, along with other reports this week, suggest the labor market is cooling but not deteriorating sharply—potentially reinforcing expectations that the Federal Reserve will keep interest rates steady until at least June.

Earlier this month, crypto market sentiment took a hit after Trump’s tariff announcement fueled concerns over global trade tensions.

The move triggered a broader risk-off shift across financial markets, with equities retreating and investors turning to safer assets. Bitcoin, often seen as a speculative asset, mirrored the weaker sentiment.

The cryptocurrency market has also been grappling with a lack of clear catalysts to drive prices higher.

Macroeconomic uncertainties, including expectations around Fed policy and global growth concerns, have also kept traders on edge.

Despite recent weakness, Bitcoin is still up substantially over the past year, supported by growing mainstream adoption and expectations of lenient crypto regulations under Trump’s administration.

Still, analysts warn that near-term price action may remain volatile, particularly as investors assess economic policy developments and broader financial market trends.

Franklin Templeton seeks to launch crypto ETF

Franklin Templeton (Franklin Resources Inc (NYSE:BEN)) has filed with the U.S. Securities and Exchange Commission (SEC) to launch a new crypto index ETF, aiming to provide investors with exposure to Bitcoin and Ether.

The firm has indicated the possibility of including additional cryptocurrencies in the future, pending regulatory approval.

This move follows growing institutional interest in digital assets, especially after the SEC's approval of Bitcoin and Ether ETFs. Other asset managers are also seeking approval for funds involving cryptocurrencies like Solana and XRP