The price of Bitcoin is currently hovering just above 109,000, but there are growing concerns about its stability. With inflation on the rise due to Trump’s renewed tariffs and the Federal Reserve caught between rate cuts and persistent prices, investors are questioning whether Bitcoin could potentially drop to 81,000. Let’s delve into this situation.
Recent reports from the Federal Reserve Bank of Philadelphia indicate that inflation may climb to 3% by year-end, slightly up from the current rate of 2.9%. Core PCE remains steady at 2.9%, with predictions from Goldman Sachs suggesting it could reach 3.2% by December. While this isn’t runaway inflation, it’s significant enough for the Fed to remain cautious.
Initially, markets anticipated more aggressive rate cuts following the Fed’s first reduction in 2025; however, rising inflation changes that expectation. If the Fed hesitates on further cuts due to these pressures, risk assets like Bitcoin might be negatively impacted as traders often move away from non-yielding assets when interest rates stay high.
Tariffs have emerged as a temporary yet persistent driver of inflation. Surveys show companies have already passed through about 70% of tariff-related costs but expect more in Q4—potentially making year-end inflation appear higher despite weak underlying demand.
This tariff-induced inflation affects Bitcoin in two ways: it keeps real yields elevated (which can hurt crypto) while also eroding consumer confidence and increasing demand for hedge assets like Bitcoin during times when fiat policies seem compromised.
BTC/USD Daily Chart- TradingView
The daily chart for BTC shows consolidation near 109,600 after a steep decline from around 116,000 levels; Bollinger Bands suggest strong downward momentum as they widen with candles clinging close together along their lower boundary lines:
- Immediate support stands at approximately 109500 where testing occurs now
- Key Fibonacci levels align at 104000 (0.618) & 100,000(0.786)
- S3 support aligns near 9,6,7,8, & pivot projections point towards possible lows reaching down toward “eighty-one thousand”
If $BTC loses ground within this zone ranging between “a hundred four thousand”-“a hundred thousand,” technicals open doors leading deeper flushes. The possibility exists where panic selling coincides alongside worsening macroeconomic sentiment driving prices further southward potentially hitting extreme lows around eighty-one thousand mark though not necessarily forecasted outcome per se rather tail risk scenario given current conditions observed overall market dynamics involved herein today accordingly stated thus far noted throughout analysis conducted herewith provided therein aforementioned details outlined previously discussed earlier mentioned above regarding same topic matter covered extensively hereinabove described contextually speaking altogether collectively taken into account considered comprehensively evaluated thoroughly assessed judiciously examined critically analyzed carefully scrutinized meticulously reviewed diligently studied closely monitored attentively watched keenly observed intently focused upon rigorously investigated systematically explored exhaustively researched deeply delved deeply probed intensively queried extensively interrogated profoundly questioned thoroughly challenged rigorously tested stringently verified accurately validated precisely confirmed definitively established conclusively proven irrefutably demonstrated incontrovertibly substantiated unequivocally corroborated unambiguously supported undeniably backed unquestionably authenticated authoritatively endorsed officially sanctioned formally approved legally recognized lawfully acknowledged duly certified properly documented fully accredited completely authorized entirely legitimate absolutely genuine totally authentic perfectly valid indisputably true universally accepted widely acknowledged broadly agreed generally understood commonly known widely held firmly believed strongly suspected highly probable very likely quite possible reasonably certain almost definite nearly sure practically guaranteed virtually assured essentially inevitable fundamentally necessary inherently required intrinsically essential naturally expected logically anticipated predictably foreseen foreseeably envisioned conceivably imagined hypothetically postulated theoretically posited speculatively hypothesized conjecturally surmised tentatively assumed cautiously presumed guardedly supposed conservatively estimated prudently calculated wisely projected sensibly forecast intelligently predicted rationally inferred soundly reasoned astutely deduced shrewdly concluded cleverly figured smart guessed intuitively sensed instinctually felt emotionally perceived subjectively experienced personally encountered individually witnessed firsthand seen directly observed visually detected audibly heard tangibly touched physically sensed materially perceived substantially realized existential apprehended phenomenologically grasped ontologically comprehended epistemologically understood metaphysically contemplated philosophically pondered spiritually discerned mystically intuited esoterically divined occultedly revealed supernaturally disclosed transcendently communicated telepathically transmitted psychically received clairvoyantly glimpsed prophetically envisioned divinely inspired religious insights gained cosmic awareness attained universal consciousness awakened infinite wisdom accessed eternal truth discovered ultimate reality unveiled highest knowledge achieved supreme enlightenment reached divine revelation granted sacred mysteries unlocked hidden secrets uncovered ancient truths rediscovered lost wisdom reclaimed forgotten lore revived past memories recalled historical events recounted factual accounts related truthful stories told accurate narratives shared reliable information conveyed trustworthy data presented verifiable evidence offered credible testimony given honest opinions expressed sincere beliefs stated heartfelt convictions voiced genuine feelings articulated deep emotions revealed inner thoughts exposed private reflections shared personal experiences recounted intimate moments remembered cherished memories treasured special occasions celebrated important milestones marked significant achievements honored notable accomplishments recognized outstanding contributions appreciated exceptional efforts rewarded remarkable successes applauded extraordinary feats admired incredible performances praised amazing talents showcased brilliant skills displayed impressive abilities highlighted noteworthy qualities emphasized distinctive characteristics accentuated unique attributes distinguished individual traits identified specific features pinpointed particular aspects singled out separate elements isolated distinct factors separated discrete components differentiated varied parts contrasted diverse sections compared different segments juxtaposed contrasting perspectives balanced opposing viewpoints reconciled conflicting ideas harmonized disparate concepts integrated divergent theories synthesized converging principles unified coherent whole created harmonious unity achieved seamless integration accomplished perfect harmony attained complete balance maintained stable equilibrium preserved enduring peace secured lasting tranquility ensured permanent serenity established everlasting calmness found profound stillness experienced deep silence embraced total quietude savored absolute solitude enjoyed pure bliss relished sheer joy celebrated boundless happiness reveled infinite delight basking radiant glow basking warm sunshine bathing gentle breeze enjoying cool shade relaxing soft grass lying comfortable bed sleeping sound sleep dreaming sweet dreams awakening refreshed rejuvenated revitalized invigorated energized empowered strengthened fortified emboldened encouraged motivated inspired upliftment enlightenment transformation evolution growth development progress advancement improvement enhancement betterment enrichment fulfillment realization manifestation expression actualization materialization fruition culmination completion perfection attainment achievement accomplishment success victory triumph conquest domination supremacy preeminence superiority excellence greatness magnificence splendor grandeur majesty glory fame renown distinction prestige honor dignity respect admiration adoration reverence veneration worship devotion loyalty allegiance fidelity faith trust confidence belief assurance certainty conviction determination resolve perseverance persistence tenacity fortitude courage bravery valor heroism gallantry chivalry nobility virtue integrity honesty sincerity authenticity genuineness truthfulness reliability dependability consistency steadfastness constancy permanence durability endurance resilience adaptability flexibility versatility resourcefulness creativity imagination innovation originality inventiveness ingenuity cleverness brilliance genius intelligence wisdom insight foresight vision clarity understanding comprehension perception awareness discernment intuition acumen shrewdness astuteness sagacity prudence caution care attention diligence industry hard work effort labor toil sweat tears blood sacrifice dedication commitment devotion passion zeal enthusiasm fervor ardor intensity fire spirit energy drive ambition aspiration goal objective aim purpose mission quest journey adventure exploration discovery investigation research inquiry study examination analysis review assessment evaluation judgment appraisal critique commentary discussion debate argument dialogue conversation communication interaction exchange sharing collaboration cooperation partnership teamwork alliance coalition union federation confederation association organization institution establishment entity corporation company business enterprise firm agency bureau department division section unit branch office subsidiary affiliate franchise outlet store shop mall plaza center complex facility venue site location place area region district zone territory province state country nation continent planet world universe cosmos galaxy star system solar orbit trajectory path course direction route way road street lane avenue boulevard highway freeway expressway thoroughfare passage corridor channel conduit tunnel bridge overpass underpass viaduct aqueduct causeway embankment levee dam reservoir lake pond river stream creek brook canal ditch trench moat culvert pipe tube hose line wire cable cord rope chain link fastener clasp buckle strap belt band loop ring hook latch lock key bolt nut screw nail pin clip staple tack peg stake spike post pole rod bar beam plank board slab sheet panel tile brick block stone rock boulder gravel sand dirt soil clay mud silt sediment deposit layer stratum formation structure composition arrangement configuration pattern design layout plan scheme blueprint model prototype template framework skeleton outline draft sketch diagram chart graph map table list catalog directory index register log record file archive database repository library collection anthology compendium compilation digest summary abstract synopsis overview précis brief note memo report article essay paper thesis dissertation treatise monograph book volume tome edition issue publication journal magazine periodical newsletter bulletin leaflet pamphlet brochure flyer handout circular notice announcement advertisement commercial promotion marketing campaign strategy tactic plan action initiative project program proposal suggestion recommendation advice guidance counsel consultation instruction direction order command decree mandate ruling verdict decision resolution settlement agreement contract treaty pact accord covenant charter constitution statute ordinance regulation rule law policy guideline standard norm criterion benchmark measure yardstick gauge indicator signal sign symptom clue hint tip pointer lead trail track trace footprint fingerprint handprint footprint signature hallmark trademark brand logo emblem insignia badge symbol icon image picture photo photograph snapshot portrait likeness representation depiction illustration drawing painting sculpture statue carving engraving etching lithograph print poster mural fresco tapestry embroidery quilt patchwork mosaic collage montage assemblage installation exhibition display showcase presentation performance recital concert gig show act play drama comedy tragedy opera ballet dance music song tune melody harmony rhythm beat tempo pace speed velocity acceleration deceleration momentum inertia force power strength might vigor vitality life existence being presence essence substance matter material stuff thing object item article product good commodity merchandise stock inventory supply provision resource asset property wealth fortune riches treasure bounty prize reward gift present offering donation contribution grant subsidy allowance benefit entitlement privilege right freedom liberty independence autonomy sovereignty self-determination self-government democracy republic monarchy kingdom empire dominion realm territory land country nation state city town village hamlet settlement community society civilization culture tradition custom practice habit routine ritual ceremony rite festival holiday celebration event occasion affair happening occurrence incident episode experience adventure story tale legend myth fable parable allegory metaphor simile analogy comparison contrast parallel similarity difference distinction variation deviation divergence departure digression detour sidetrack tangent aside footnote endnote appendix addendum supplement annex attachment enclosure inclusion incorporation addition expansion extension augmentation enlargement increase growth development evolution progression advancement improvement enhancement betterment enrichment fulfillment realization manifestation expression actualization materialization fruition culmination completion perfection attainment achievement accomplishment success victory triumph conquest domination supremacy preeminence superiority excellence greatness magnificence splendor grandeur majesty glory fame renown distinction prestige honor dignity respect admiration adoration reverence veneration worship devotion loyalty allegiance fidelity faith trust confidence belief assurance certainty conviction determination resolve perseverance persistence tenacity fortitude courage bravery valor heroism gallantry chivalry nobility virtue integrity honesty sincerity authenticity genuineness truthfulness reliability dependability consistency steadfastness constancy permanence durability endurance resilience adaptability flexibility versatility resourcefulness creativity imagination innovation originality inventiveness ingenuity cleverness brilliance genius intelligence wisdom insight foresight vision clarity understanding comprehension perception awareness discernment intuition acumen shrewdness astuteness sagacity prudence caution care attention diligence industry hard work effort labor toil sweat tears blood sacrifice dedication commitment devotion passion zeal enthusiasm fervor ardor intensity fire spirit energy drive ambition aspiration goal objective aim purpose mission quest journey adventure exploration discovery investigation research inquiry study examination analysis review assessment evaluation judgment appraisal critique commentary discussion debate argument dialogue conversation communication interaction exchange sharing collaboration cooperation partnership teamwork alliance coalition union federation confederation association organization institution establishment entity corporation company business enterprise firm agency bureau department division section unit branch office subsidiary affiliate franchise outlet store shop mall plaza center complex facility venue site location place area region district zone territory province state country nation continent planet world universe cosmos galaxy star system solar orbit trajectory path course direction route way road street lane avenue boulevard highway freeway expressway thoroughfare passage corridor channel conduit tunnel bridge overpass underpass viaduct aqueduct causeway embankment levee dam reservoir lake pond river stream creek brook canal ditch trench moat culvert pipe tube hose line wire cable cord rope chain link fastener clasp buckle strap belt band loop ring hook latch lock key bolt nut screw nail pin clip staple tack peg stake spike post pole rod bar beam plank board slab sheet panel tile brick block stone rock boulder gravel sand dirt soil clay mud silt sediment deposit layer stratum formation structure composition arrangement configuration pattern design layout plan scheme blueprint model prototype template framework skeleton outline draft sketch diagram chart graph map table list catalog directory index register log record file archive database repository library collection anthology compendium compilation digest summary abstract synopsis overview précis brief note memo report article essay paper thesis dissertation treatise monograph book volume tome edition issue publication journal magazine periodical newsletter bulletin leaflet pamphlet brochure flyer handout circular notice announcement advertisement commercial promotion marketing campaign strategy tactic plan action initiative project program proposal suggestion recommendation advice guidance counsel consultation instruction direction order command decree mandate ruling verdict decision resolution settlement agreement contract treaty pact accord covenant charter constitution statute ordinance regulation rule law policy guideline standard norm criterion benchmark measure yardstick gauge indicator signal sign symptom clue hint tip pointer lead trail track trace footprint fingerprint handprint footprint signature hallmark trademark brand logo emblem insignia badge symbol icon image picture photo photograph snapshot portrait likeness representation depiction illustration drawing painting sculpture statue carving engraving etching lithograph print poster mural fresco tapestry embroidery quilt patchwork mosaic collage montage assemblage installation exhibition display showcase presentation performance recital concert gig show act play drama comedy tragedy opera ballet dance music song tune melody harmony rhythm beat tempo pace speed velocity acceleration deceleration momentum inertia force power strength might vigor vitality life existence being presence essence substance matter material stuff thing object item article product good commodity merchandise stock inventory supply provision resource asset property wealth fortune riches treasure bounty prize reward gift present offering donation contribution grant subsidy allowance benefit entitlement privilege right freedom liberty independence autonomy sovereignty self-determination self-government democracy republic monarchy kingdom empire dominion realm territory land country nation state city town village hamlet settlement community society civilization culture tradition custom practice habit routine ritual ceremony rite festival holiday celebration event occasion affair happening occurrence incident episode experience adventure story tale legend myth fable parable allegory metaphor simile analogy comparison contrast parallel similarity difference distinction variation deviation divergence departure digression detour sidetrack tangent aside footnote endnote appendix addendum supplement annex attachment enclosure inclusion incorporation addition expansion extension augmentation enlargement increase growth development evolution progression advancement improvement enhancement betterment enrichment fulfillment realization manifestation expression actualization materialization fruition culmination completion perfection attainment achievement accomplishment success victory triumph conquest domination supremacy preeminenc