Bitcoin Struggles Within Range as Trade and Fiscal Uncertainty Weigh on Sentiment

Bitcoin experienced a slight dip on Wednesday, continuing its rangebound performance as persistent uncertainty around U.S. trade deals and the sweeping tax bill continued to dampen investor sentiment. The world’s largest cryptocurrency remained firmly within its established $103,000 to $108,000 trading range that has characterized much of June.

At 01:14 ET (05:14 GMT), Bitcoin fell by 0.6% to $106,321.4, still holding a 3.5% gain for the month. Despite this monthly increase, Bitcoin has struggled to break out of its recent trading range, reflecting broader market uncertainty.

Uncertainty Over U.S. Trade Deals and Tax Bill

Crypto markets mirrored the performance of other risk-driven assets, which have also shown muted movements amidst growing uncertainty around U.S. trade tariffs. President Donald Trump’s July 9 deadline for securing trade deals looms, and investors are concerned about the potential for tariffs to be imposed if agreements are not reached.

While some limited trade deals have been signed, President Trump flagged a potential agreement with India while also threatening higher tariffs on Japan. These tensions have left markets wary, with investors watching closely for any developments that could have broader economic implications.

On the fiscal front, the U.S. Senate recently passed a controversial tax and spending cut bill, sending it to the House of Representatives for a final vote. Critics argue that the bill could further strain U.S. fiscal health and raise the risk of a debt default, which has added to the general market uncertainty.

Although trade and fiscal concerns do not directly impact the cryptocurrency sector, Bitcoin and other crypto assets are still vulnerable to shifts in sentiment driven by broader market conditions. This has contributed to Bitcoin’s struggles to gain traction outside its established range.

Bitcoin Miner MARA Reports Decline in Output

Bitcoin mining company MARA Holdings (formerly Marathon Digital) reported a significant decline in its mining output for June. The company mined 211 Bitcoin in June, down 25% from May’s 282 Bitcoin output, citing disruptions caused by unfavorable weather and natural variability in block luck. MARA’s mining hash rate also decreased slightly from 58.3 to 57.4.

Despite the drop in production, MARA’s stockpile of Bitcoin rose to 49,940 coins by the end of June, securing its position as the second-largest corporate Bitcoin holder after Strategy (formerly MicroStrategy).

Altcoins Drift Lower Amid Rangebound Bitcoin

Broader crypto markets continued to show weakness on Wednesday, with altcoins largely following Bitcoin’s downward trajectory. Ether, the world’s second-largest cryptocurrency, fell 0.8% to $2,441.80, while XRP dropped 1.2% to $2.1895. Solana and Cardano also lost ground, falling 1.6% and 1.5%, respectively.

Among meme coins, Dogecoin and $TRUMP each shed 1.3%, continuing their sluggish performance from June.

Bitcoin’s price remains largely static as investors await clearer signals from the ongoing trade negotiations and the passage of the tax bill. With fiscal and trade-related uncertainties continuing to dominate the global landscape, Bitcoin’s speculative nature makes it vulnerable to shifts in sentiment that could limit its ability to break free from the established range. Investors will continue to monitor the developments closely, especially as the July 9 tariff deadline approaches.