Bitcoin falls to $106K amid U.S. tariff and tax bill uncertainty

Bitcoin fell on Tuesday, extending overnight losses as risk appetite was dampened by growing uncertainty surrounding U.S. trade tariffs and the potential impact of a sweeping tax and spending bill backed by President Donald Trump.

The world’s largest cryptocurrency also faced profit-taking after strongly outperforming the broader crypto market in June. Bitcoin dropped 1.5% to $106,811.6 at 01:39 ET (05:39 GMT). U.S.–Japan relations appeared strained after Trump criticized Japan for allegedly failing to purchase U.S. rice imports and threatened to walk away from trade negotiations with Tokyo. Major global economies have until July 9 to strike a trade deal with the U.S., or face steep American tariffs ranging from 20% to 50%.

Fiscal concerns grow as Senate debates Trump’s tax bill On the fiscal front, U.S. senators embarked on a marathon voting session to debate and eventually vote on Trump’s “Big Beautiful Bill,” amid growing concerns about its fiscal impact. A nonpartisan analysis estimated that the bill would add $3.3 trillion to the U.S. debt over the next decade if passed in its current form. This comes as U.S. debt already stands at a record $36 trillion. Markets fear the bill could further widen the fiscal deficit and increase the risk of a government default, especially if the spending cap isn’t raised by year-end.

Although trade and fiscal concerns do not directly impact cryptocurrency markets, crypto remains broadly vulnerable to shifts in market sentiment due to its speculative nature. Altcoins struggle after weak June The broader cryptocurrency market showed little relief, moving in a flat-to-bearish range after steep losses in June. Excluding Bitcoin, crypto prices mostly retreated last month. Ethereum (Ether), the world’s second-largest cryptocurrency, slipped 0.2% to $2,459.01, while XRP rose 1.2% to $2.2169. Solana gained 0.5%, while Cardano remained flat after dropping nearly 17% in June.

Among meme coins, Dogecoin fell 1.6%, and $TRUMP slid 3.2%. Institutional buying offers limited support Bitcoin found little support from major corporate holders this week. Strategy (formerly MicroStrategy, NASDAQ: MSTR) and Japan’s Metaplanet Inc (TYO: 3350) announced further acquisitions of the cryptocurrency—Strategy purchased over $500 million worth, while Metaplanet added $108 million in Bitcoin.

However, crypto markets have largely lagged behind other risk-driven markets, particularly equities, as gains in tech stocks pushed Wall Street to record highs in recent sessions. All eyes on Trump’s trade threats and tax bill approval Markets are currently focused on two major uncertainties: Trump’s plans for trade tariffs ahead of the July 9 deadline, and the Senate vote on a controversial tax and spending bill. On the trade front, the U.S. and Canada were expected to resume talks after Ottawa appeared to yield to Trump by scrapping a key digital sales tax on American firms.