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Bitcoin remained largely unchanged on Thursday as investors showed a lack of clear direction amid ongoing U.S. tariff concerns and uncertainty about the Federal Reserve’s interest rate plans.

The cryptocurrency, which has been stuck in a consolidation phase, continued trading within tight price ranges as the market awaited new catalysts to spark the next significant move. By 01:15 ET (6:15 GMT), Bitcoin was up just 0.2%, reaching $96,811.1.

On Wednesday, the token saw a nearly 1% increase following news of resumed diplomatic talks between the U.S. and Russia, aimed at addressing the ongoing Russia-Ukraine conflict. The talks briefly boosted market optimism, potentially alleviating concerns about global inflation. However, Bitcoin couldn't maintain its momentum, as reflected in its subdued price action.

Crypto markets are consolidating amid ongoing concerns over U.S. tariffs and Fed rate uncertainty.  Recent developments, such as the possibility of higher U.S. tariffs on auto, semiconductor, and pharmaceutical imports, have fueled a risk-averse sentiment, negatively impacting risk assets like Bitcoin.

Investors are also focused on the Federal Reserve's next moves, with recent meeting minutes highlighting that the central bank isn’t in a rush to cut rates in 2025. The minutes also noted concerns that President Trump's proposed tariffs could disrupt global supply chains, leading to higher costs and inflation.

This scenario could add further pressure on Bitcoin, which historically struggles in high-interest-rate environments due to its sensitivity to liquidity. The cautious sentiment is reflected in the low trading volumes, leaving Bitcoin stuck in a narrow range. Analysts believe that a breakout in either direction could provide the momentum needed to revive market activity, with investors awaiting clearer signals before making major moves.

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