Bitcoin Tumbles in the Face of High Inflation and New Tariff Pressure

The cryptocurrency fell to $108K after the “de minimis” exemption ended on Friday and core inflation came in at 2.9%.

BTC Buckles Under Dual Pressure of Increasing Inflation and Trade Tensions

Both crypto and stock markets bled on Friday after core inflation came in at 2.9% and the “de minimis” exemption, which waives tariffs on goods that cost less than $800, expired earlier than planned. Bitcoin sank to its lowest level since July on the news.

The U.S. Bureau of Economic Analysis (BEA) published its monthly personal consumption expenditures (PCE) price index data, a measure of inflation favored by the Federal Reserve, showing July’s PCE at 2.6% if all goods are included, but revealing a higher “core” rate of 2.9% when volatile items in the food and energy categories are removed. While that core figure was in line with analysts’ expectations, it was also the highest rate of inflation since February 2025.

To add insult to injury, an obscure trade rule that allowed cheap goods below $800 to enter the U.S. duty-free, abruptly ended on Friday after President Donald Trump signed an executive order earlier in the year to move the expiration date to August 29 instead of later in 2027. The change could cost American families an additional $136 per family and “would disproportionately hurt low-income and minority households,” according to two professors.

Overview of Market Metrics

Bitcoin was priced at $108,186.53 at the time of reporting, down 3.79% for the day and 7.38% for the week, according to Coinmarketcap. The digital asset has been trading between $108,098.62 and $112,619.05 over 24 hours.

Twenty-four-hour trading volume was up 15.84% at $72.77 billion, but market capitalization fell 3.72% to $2.15 trillion, in line with the price decline. However, bitcoin dominance rose slightly, inching up by 0.09% to 58.30%, according to data from Coinmarketcap.

Total bitcoin futures open interest fell by 1.17% to $80.28 billion over 24 hours and bitcoin liquidations on Coinglass climbed to $133.62 million during the same period. Of that total, $121.61 million was long liquidations, and a significantly smaller $12.01 million was from shorts.