Bitcoin Falls Below $108K as New Tariff Announcements Spark Market Jitters

Bitcoin began the week on a sour note, slipping below $108,000 in response to renewed geopolitical tension and escalating trade measures from the United States. The world’s largest cryptocurrency erased its modest weekend gains after President Donald Trump unveiled a fresh round of tariffs targeting imports from Japan and South Korea, and signaled additional duties on countries aligned with the BRICS economic bloc. This renewed protectionist stance triggered a wave of caution across both traditional and digital financial markets.

After reaching a weekend high of around $109,700, Bitcoin retreated by over 1% to approximately $107,700 in U.S. trading hours. The downturn wasn’t limited to Bitcoin; other major crypto assets, including Ethereum (ETH), Solana (SOL), and Avalanche (AVAX), also recorded losses of up to 2% as broader risk sentiment declined. Analysts noted that the crypto pullback was closely aligned with weakness in equity indices, further confirming the increasing correlation between digital assets and traditional markets.

The tariffs prompted a swift reaction on Wall Street. The Nasdaq 100 and S&P 500 both declined by around 1%, while U.S. Treasury yields moved higher as investors reassessed inflation and interest rate expectations. The 10-year yield approached 4.4%, reflecting market concerns that fresh supply chain disruptions or retaliatory actions could complicate the Federal Reserve’s path forward. These developments added pressure to Bitcoin, which has struggled to regain momentum since testing the $110K resistance zone earlier in the month.

One notable development was MicroStrategy’s sudden pause in Bitcoin acquisitions. The firm, known for aggressively expanding its BTC holdings, did not report any new purchases for the week ending July 6—marking its first inactivity streak since early April. Market watchers interpreted this as a possible signal of institutional caution amid heightened macro uncertainty. While some investors still view Bitcoin as a long-term inflation hedge, short-term price action appears increasingly driven by global trade dynamics and U.S. policy decisions.

Despite the current dip, some analysts maintain that Bitcoin remains fundamentally strong. On-chain data indicates continued accumulation by long-term holders, while Bitcoin ETFs in the U.S. have seen moderate inflows. However, until clarity emerges on tariffs and global monetary policy, traders are likely to remain defensive, keeping prices range-bound in the near term.