Bitcoin Drops 2% From Record High Amid Tariff Concerns

Bitcoin's price experienced a notable fluctuation, falling below the $112,000 record high it briefly reached earlier. This decline was driven by profit-taking by investors and concerns over new tariff announcements. The cryptocurrency had surged past the $112,000 mark in the late New York session, fueled by a resurgence in risk appetite and growing institutional adoption. However, the subsequent drop indicates that investors are cautious about the potential impact of tariffs on the broader market.

The recent tariff announcements, particularly the 50% tariff on copper imports and the reciprocal tariffs on Brazil, have added to the uncertainty. These tariffs, along with the ongoing trade tensions, have raised concerns about their potential to disrupt global supply chains and increase costs for businesses. This uncertainty has led some investors to take profits, contributing to the decline in Bitcoin's price.

Despite the recent drop, Bitcoin's price remains above $110,000, indicating that the cryptocurrency still has significant support. The decline in price has also led to a decrease in investor enthusiasm, as they wait for more clarity on the tariff situation. However, the overall sentiment towards Bitcoin remains bullish, with many analysts predicting that the cryptocurrency will continue to rise in the long term.

The recent price movements in Bitcoin highlight the volatility of the cryptocurrency market. While Bitcoin has shown remarkable resilience in the face of market uncertainty, investors must remain vigilant and be prepared for sudden price movements. The ongoing trade tensions and tariff announcements add an additional layer of complexity to the market, making it even more important for investors to stay informed and adapt their strategies accordingly.

The milestone of Bitcoin reaching nearly $112,000 comes amid growing allocations from institutional investors, including entities moving Bitcoin into treasury portfolios and ETFs overseen by major asset managers. Corporate treasuries continue to accumulate Bitcoin aggressively, with Strategy Inc remaining the most visible, but newer entrants, such as GameStop Corp, have joined the ranks, announcing board-approved Bitcoin purchases. Earlier this week, Trump Media filed with the U.S. Securities and Exchange Commission seeking approval to launch a new "Crypto Blue Chip ETF" later this year. These structural tailwinds, including ETF inflows, corporate treasury expansion, and supportive U.S. policy, have sharpened Bitcoin’s appeal as an institutional-grade asset.

Looking ahead, investors are also focused on “Crypto Week” starting July 14, when U.S. lawmakers are expected to push forward at least three major bills aimed at regulating digital assets. Meanwhile, uncertainty over the Federal Reserve’s rate outlook further tempered crypto gains. Just a few Fed officials at the June 17–18 meeting backed a rate cut this month, while most remained concerned about inflation risks from tariff-driven trade policy.

Most altcoins jumped on Thursday amid optimism over the biggest cryptocurrency hitting a record high. World no.2 crypto Ethereum jumped 5.7% to $2,776.81. World no. 3 crypto XRP climbed 4.1% to $2.42. Solana rose 2.6%, and Cardano added 4.2%, while Polygon surged 5%. Among meme tokens, Dogecoin also traded 5% higher, while $TRUMP jumped 6.1%.