Bitcoin Holds at $108,873 Amid Tariff Concerns and ETF Boom

On Wednesday, Bitcoin stabilized at $108,873, down 0.07% after failing to sustain a breakout above $110,000, near its all-time high of $112,000. U.S. tariff threats and surging institutional demand through crypto ETFs are driving market dynamics.

With trade tensions rising and derivatives interest spiking, Bitcoin’s long-term bullish trend persists, but short-term volatility looms. Meanwhile, policymakers deliver clear trade and regulatory signals to stabilize markets and sustain BTC’s momentum.

Tariff Tensions Fuel Volatility

U.S. tariff threats, extended to August 1 with rates up to 25% targeting Japan and South Korea, have curbed risk appetite, contributing to Bitcoin’s 0.07% dip to $108,873. The International Monetary Fund projects a 0.5% global GDP reduction from tariffs, spurring cautious trading. A recent $8.6 billion transfer of 80,000 BTC from 2011 wallets to modern addresses signals whale activity, potentially amplifying volatility.

Investors await trade negotiation outcomes, with a potential correction looming at the 0.618 Fibonacci retracement level of $102,909 if tensions persist.

ETF Inflows Drive Bullish Sentiment

Bitcoin’s market cap stands at $2.17 trillion, with derivatives open interest rising from $60 billion to $70 billion in early 2025, fueled by ETF inflows. A major Bitcoin ETF holds over $75 billion in assets, with $164 million in recent inflows, while a new crypto ETF filing underscores corporate adoption, with 54 companies investing $500 million in BTC treasuries. Despite a possible Wave 2 correction to $102,909–$104,000, per Elliott Wave analysis, Bitcoin eyes $110,500 in a Wave 3 rally.

Regulatory Clarity and Market Signals

Recent stablecoin legislation aims to bolster BTC adoption, but a bull trap above $110,000 suggests whale-driven liquidity grabs. Federal Reserve minutes, due July 9, may clarify September rate cut odds (78% per CME FedWatch Tool), impacting BTC’s inflation hedge appeal. The Fair Value Gap at $102,000–$104,000 offers a strategic entry point.

Path to Sustained Rally

Bitcoin’s stability at $108,873 reflects tariff-driven caution and institutional enthusiasm. U.S. policymakers do clarify trade policies, and regulators endavour to ensure transparent crypto frameworks. Investors are keen on monitoring the $102,909–$104,000 range, FOMC minutes, and trade talks. Without coordinated action, BTC risks a pullback, but a Wave 3 could push prices to $110,500 or beyond by August.