Bitcoin (BTC) price prediction: Trump issues tariff letter overnight, which could further delay The Federal Reserve (FED) interest rate cuts.

Today (8th) during the Asian early session, the price of Bitcoin (BTC) further retraced, currently reported at around 107660 USD. The dynamics of US tariffs have affected the demand for Bitcoin (BTC). US President Trump issued a trade letter overnight, reintroducing the same tariffs as on April 2nd. As trade panic escalates, it may further delay the Federal Reserve (FED) from cutting interest rates.

Spencer Hakimian, founder of Tolou Capital Management, shared a Bloomberg chart that highlighted the similarities between the latest tariffs and the tariffs on U.S. Liberation Day.

Bitcoin has remained sensitive to trade conditions. Since Trump imposed tariffs, The Federal Reserve (FED) has kept interest rates unchanged due to concerns that tariffs would exacerbate inflationary pressures. Monday's statement may further delay The Federal Reserve (FED) from cutting interest rates, affecting risk assets.

The prospect of punitive tariffs is also putting pressure on the US stock market, with the Nasdaq index falling by 0.92%.

The U.S. Bitcoin Spot ETF Market Continues Inflow Momentum

Although the market reacted strongly to Trump's tariff letter, the demand from U.S. Bitcoin spot ETF issuers remains strong, which alleviates the downside risk of Bitcoin. According to Farside Investors, the main capital flow trends on July 7 include:

· Fidelity Research Origin Bitcoin Fund (FBTC) net inflow of 66 million USD

· Gray Scale Bitcoin Mini Trust Net Inflow of 6.2 Million USD

· ARK 21Shares Bitcoin ETF (ARKB) and Grayscale Bitcoin Spot ETF (GBTC) reported a total net outflow of $20.3 million

The fund flow data for BlackRock iShares Bitcoin Spot ETF (IBIT) is about to be released, and the total inflow for U.S. Bitcoin Spot ETFs has reached $51.9 million, potentially marking three consecutive trading days of inflow. The last report of net outflow for IBIT was on June 6.

Bitcoin Price Analysis

FXEmpire analyst Bob Mason stated that the recent price outlook for Bitcoin depends on several key events, including trade headlines, legislative developments, Federal Reserve comments, and trends in spot ETF flows. Possible scenarios:

Bearish scenario: Escalating trade tensions, legislative setbacks, strong signals from the Federal Reserve (FED), and outflows from ETF funds. The combined effect of these factors may pull Bitcoin towards the 50-day Exponential Moving Average (EMA) and potentially break through 100,000 USD.

Bullish scenario: Easing trade tensions, bipartisan support for cryptocurrency legislation, dovish hints from The Federal Reserve (FED), and ETF fund inflows. In these scenarios, Bitcoin could reach a historical high of $111,917.

(Source: Trading View)