Bitcoin Sinks to $106K on Trade, Tax Uncertainty in U.S.

Price drop: Bitcoin declined about 1.5% to trade around $106,811 by 01:39 ET (05:39 GMT) as markets reacted to rising trade‑tariff uncertainty and the potential economic effects of a proposed U.S. tax and spending cut bill.

Profit‑taking following June rally: The cryptocurrency had outperformed in June, prompting some investors to lock in gains, further fueling the pullback.

Trade policy worries: Rising concerns over U.S. tariff threats — notably Trump’s threats to impose duties on cars, semiconductors, and pharmaceuticals — intensified market pressure ahead of a July 9 deadline for potential tariffs.

Fiscal uncertainty adds pressure: Investors are also watching a contentious tax-and-spending bill in the Senate. Analysis shows it could add $3.3 trillion to U.S. debt over 10 years, raising fears of broader market instability.

Major holders remain steady: Despite market jitters, institutional investors like former MicroStrategy (Strategy) and Japan’s Metaplanet continued accumulating—adding roughly $500 million and $108 million respectively in Bitcoin this week.

Altcoins dragged lower: The broader crypto market also softened, with Ethereum modestly lower and altcoins like Dogecoin and others showing minimal relief after June’s losses.