Key Insights
- Bitcoin (BTC) price stays above $100,000 as long-term holders continue to sell into strength.
- Trump’s $2,000 Tariff Dividend could boost spending but also push inflation higher.
- Rising inflation may delay Fed rate cuts, keeping money tight and hurting crypto markets.
Bitcoin price is trying to stay above $100,000 as Donald Trump talks about a $2,000 “tariff dividend” for Americans. The plan is to give quick money so people spend more. At first, that looks good for the economy.
When spending grows, prices and markets can move up for a while. Bullish, right!
But there is a catch. This extra money can make inflation go higher right when the Federal Reserve plans to lower rates again.
Bitcoin does well when money is easy to borrow, but if prices rise too fast, the Fed may stop cutting rates. That means less new money and less support for risky assets like crypto. Let us learn how!
Bitcoin Price Still Weak as Big Holders Sell
Bitcoin price has stayed weak for weeks. Even after two rate cuts this year, big holders are still selling. Data shows that old wallets are sending coins to exchanges, which often means people are taking profit and playing safe.
At press time, Bitcoin price moved past $106,000 for a short time, showing a bit of strength.
But it still needs to go about 5.5% higher to reach $111,999 before any real recovery can start. Many big traders are still not sure about the market, and that is keeping rallies short.
Trump Tariff Dividend May Slow Down Things
Trump’s Tariff Dividend plan is made to give families quick help. Each person will get $2,000, but this money will come from higher taxes on goods bought from abroad.
It may help people buy more for now, but it can also make prices rise faster if spending grows too much.
That adds more work for the Federal Reserve, which has already lowered rates twice this year. If inflation climbs again, the Fed may stop cutting rates.
That means loans can stay costly, and less money will move into markets. For Bitcoin or crypto, this could be a problem because it needs a steady money flow to grow.
Why Rising Prices Can Hurt Bitcoin Price?
Bitcoin price often does well when people can borrow money easily. When interest rates are low, traders move into crypto to earn more.
But when prices rise, the Fed keeps rates high to control inflation. That slows borrowing and stops money from moving freely in the market.
If this goes on, traders may move their money to safer places like cash or bonds. When that happens, demand for crypto drops.
The Bitcoin price could then fall below $100,000 again as traders wait for better market signals.
Retail Traders Stay Hopeful, Big Investors Stay Careful
Small traders are still trying to buy after the news. A small jump often comes when the government gives out new payments.
But if there is no new money coming into the market, that jump will not last long.
Data shows that small traders are buying, hoping the Tariff Dividend helps. At the same time, big holders are still selling.
This shows a market divided into two: small traders are hopeful, and big investors are careful. If small buyers stop buying and whales keep selling, the Bitcoin price can drop again.
The BTC price is still under pressure. Trump Tariff Dividend can lift the mood for a short time, but it can also make inflation worse and delay rate cuts.
If whales and long-term holders keep selling and the Fed does not release more money, Bitcoin may struggle to stay above $100,000.
Small traders may stay positive, but without more cash coming into the market, any rise in price will not last long.