Market Summary: Bitcoin Drops Below $108K

Bitcoin (BTC) is trading around $107,900, down roughly 1.6%, while Ethereum (ETH) has dropped by nearly 3% to $2,518. This decline comes as global markets react to new US trade policy signals and reduced liquidity heading into the July 4th holiday.

US Tariff Threats Spark Risk-Off Mood

After a brief boost from strong US jobs data, markets turned risk-averse following statements from US officials indicating potential tariff hikes. Proposed import duties range from 10% to 70%, targeting a wide range of goods.

For crypto markets, this has triggered broad selling, mirroring the behavior seen in traditional equities. As macroeconomic uncertainty rises, investors are pulling back from high-volatility assets like cryptocurrencies.

Holiday Lull Leads to Thin Volume

With US markets closed for Independence Day, trading volumes across crypto exchanges have slumped. According to CryptoRank, overall volume fell from $120 billion to just under $97 billion in 24 hours. The total crypto market cap also shrank by over 4%, now sitting near $3.43 trillion.

Lower liquidity typically results in amplified price movements, making the market more vulnerable to sharp swings.

What’s Next for Bitcoin and Ethereum?

Despite today's pullback, institutional interest remains strong. Spot Bitcoin ETFs continue to attract inflows, and the recently approved Ethereum spot ETFs are seeing early traction. Analysts suggest this structural support could help stabilize prices in the medium term.

Additionally, technical analysts note that BTC options markets are showing signs of a coiling pattern — a potential setup for a larger breakout move in the coming days.

Final Thoughts

Today’s crypto dip is driven by a mix of macroeconomic concerns and reduced holiday trading activity. While short-term volatility remains elevated, the broader outlook for Bitcoin and Ethereum is still supported by institutional demand and upcoming policy signals from the Federal Reserve.

Key takeaway: The current correction appears more like a macro-driven pause than the start of a deeper crash — but traders should stay alert for further developments in global trade and interest rate policy.