Investing.com– Bitcoin was largely muted on Thursday as investors lacked clear directional momentum amid lingering U.S. tariffs and uncertainty surrounding the Federal Reserve interest rate outlook.

The cryptocurrency, which has struggled to break out of its recent consolidation phase, continued moving in tight ranges as market participants awaited fresh catalysts to drive the next move.

Bitcoin inched 0.2% higher to $96,811.1 by 01:15  ET (6:15 GMT).

The token had gained nearly 1% on Wednesday after renewed diplomatic engagements between the U.S. and Russia.

Reports of resumed talks aimed at resolving the ongoing Russia-Ukraine conflict had slightly bolstered market optimism, potentially easing global inflation concerns. But, Bitcoin could not sustain a rally, reflected in its tepid moves.

Crypto markets see consolidation amid US tariffs, Fed rate worries

The muted price action comes as broader financial markets grapple with mixed signals on the global economic landscape.

Recent developments, including the potential for increased U.S. tariffs on auto, semiconductor, and pharma imports, have added to the risk-off sentiment, weighing on risk assets like Bitcoin.

Investors are also closely monitoring the Federal Reserve's next steps, with recent meeting minutes reiterating the view that the central bank was in no rush to cut rates in 2025.

The minutes revealed that Fed officials believe Trump's proposed tariffs could disrupt global supply chains, leading to increased costs and elevated inflation.

Such a scenario could further pressure Bitcoin, which has historically underperformed in high-interest-rate environments due to its sensitivity to liquidity conditions.

Reflecting the cautious tone, trading volumes in the crypto market have remained subdued. The lack of participation has left Bitcoin trapped in a narrow range, with technical analysts noting that a breakout in either direction could provide the momentum needed to reignite market activity.

Analysts said that Bitcoin appears to be in a holding pattern, with investors awaiting clearer signals before committing to significant positions.

Crypto price today: altcoins mixed, record marginal moves

Altcoins were mixed on Thursday but saw marginal moves in line with Bitcoin’s movement.

World no.2 crypto Ether ticked up 0.5% to $2,728.8 on Thursday.

World no. 3 crypto XRP dropped 1.3% to $2.7028.

Solana gained 2%, and Cardano rose 0.8%, while Polygon edged up 0.3%.

Among meme tokens, Dogecoin inched up 0.2%, while $TRUMP ticked 0.7% lower.