Bitcoin Tumbles to $108K Amid Inflation and Tariff Pressures

Bitcoin tumbles again, this time sliding to $108K, as macroeconomic headwinds piled on over the weekend. The cryptocurrency faced a one-two punch: higher-than-expected inflation numbers and fresh tariff adjustments that sent risk assets broadly lower.

Inflation Data Rekindles Investor Anxiety

Core inflation in the U.S. came in at 2.9%, surpassing expectations and signaling that consumer prices remain sticky. For investors, this undermines hopes of imminent rate cuts by the Federal Reserve.

• Rising inflation keeps borrowing costs higher for longer.
• Risk assets like Bitcoin often suffer as investors flock to cash and Treasuries.
• Traders see a higher probability of continued volatility into the fall.

This development dampens Bitcoin’s appeal as an inflation hedge, at least in the short term, as traditional markets regain preference for safer assets.

Tariff Pressure Mounts After ‘De Minimis’ Ends

Adding to the woes, the U.S. officially ended the “de minimis” tariff exemption, which previously allowed low-value goods to enter the country duty-free. The move has rattled markets:

• Import costs are expected to rise, potentially stoking further inflation.
• Businesses face tighter margins, which could cascade into broader market uncertainty.
• Bitcoin, already sensitive to macro shocks, absorbed selling pressure from investors seeking liquidity.

Together, inflation and tariffs create a feedback loop that clouds Bitcoin’s near-term trajectory.

Crypto Market Reactions

The sell-off wasn’t confined to Bitcoin. Ethereum fell to $3,950, while Solana slid under $180. Altcoins across the board mirrored the weakness, with traders citing macro pressures as the primary driver.

Analysts also noted that leveraged positions in Bitcoin futures were flushed out, accelerating the downward move.

What Analysts Are Saying

Market experts remain split:

• Bearish camp: If inflation persists and tariffs trigger a global slowdown, Bitcoin could revisit $100K support in coming weeks.
• Bullish camp: Others argue that structural demand from spot ETFs and long-term holders provides a cushion, with any dip seen as a buying opportunity.

What’s Next for Bitcoin?

The next key test for Bitcoin will come from the Federal Reserve’s policy guidance and market reaction to the new tariff environment. If inflation data continues to run hot, crypto markets may remain under heavy stress.

Still, institutional adoption via ETFs and growing on-chain activity provide reasons to believe Bitcoin’s long-term trajectory remains intact.

Key Takeaway

With Bitcoin tumbling to $108K, the interplay of inflation fears and tariff pressures is rewriting the short-term market script. Whether this proves a temporary shakeout or the start of deeper declines hinges on how global markets adapt to a tightening economic climate.