📉 Bitcoin Slides to 108K as Inflation Spikes and Trade Waivers Expire

Inflation’s back, tariffs just got pricier, and Bitcoin paid the price — dipping to 108K after the U.S. scrapped the “de minimis” import exemption and July’s inflation hit its highest since February.

⚡ Quick Hits

• 💸 BTC price: 108K after 2.9% core inflation print
• 📦 Trade shock: 800 duty-free import exemption scrapped Aug 29
• 📊 Household hit: 136/year avg. extra cost, worst for low-income families
• 🔥 Market move: 133.6M liquidations in 24 hrs — 91% longs wiped
• 📈 BTC dominance: 58.3% — Bitcoin still king despite red markets

🏦 Inflation + Trade = Double Trouble

July’s core inflation at 2.9% (Fed’s favorite metric) didn’t surprise analysts, but it reinforced the “sticky inflation” narrative. Markets hate it.

At the same time, the U.S. killed the de minimis tariff exemption — a policy that let imports under 800 skip duties. Originally set to last until 2027, it was abruptly scrapped. That means higher costs for households and small businesses already squeezed by inflation.

Together? A one-two punch that sent both equities and crypto lower.

📊 Market Fallout: Liquidations Everywhere

Bitcoin’s moves were fast and brutal:

• Price range: 108K – 112.6K in 24 hrs
• Volume: 72.77B (+15.8%) → traders scrambling
• Market cap: 2.15T (–3.7%)
• Futures: 133.6M liquidations, with longs (121.6M) absolutely smoked

BTC still held relative dominance at 58.3%, but the sell-off showed how quickly leveraged bets can unravel when macro headlines hit.

🌍 Why It Matters

Bitcoin is supposed to be “uncorrelated hard money.” But in reality, macro and policy shocks still move the chart:

• Inflation = Fed hawkishness = less risk appetite
• Tariffs = higher costs = lower disposable income = weaker inflows
• Leverage = accelerant for every sudden move

The message? BTC’s not immune. It reacts to trade wars, tariffs, and Fed policy just like equities do.

👀 What to Watch Next

• 🪙 Next CPI / Fed minutes — can Powell cool things down?
• 📦 More tariff moves — will other exemptions fall?
• 📉 Crypto leverage — high OI = ripe for more liquidation cascades

✍️ TL;DR

Bitcoin slipped to 108K after U.S. inflation clocked in at 2.9% and the duty-free import exemption ended early, adding unexpected costs for households. Over 133M in longs got liquidated in 24 hours. BTC remains dominant, but its price action shows how inflation, tariffs, and macro policy can still wreck short-term momentum.