Bitcoin Crosses $108K as Tariff Fears Subside
Frederick Munawa
Markets and Prices
Bitcoin Crosses $108K as Tariff Fears Subside
The New York Fed’s Survey of Consumer Expectations for May showed that Americans are becoming less worried about tariff-induced price inflation.
With Tariff Tensions Easing, Bitcoin Soars Past $108K
Americans are getting less worried about higher prices at the pump as qualms around the Trump administration tariffs fade. The Federal Reserve Bank of New York published its monthly Survey of Consumer Expectations on Monday showing a decrease in inflation expectations across all three time horizons measured by the poll.
Stock markets jumped on the news, and bitcoin regained its momentum, climbing above the $108K threshold after a week of stagnation. The survey gauges consumer inflation expectations across one, three, and five-year horizons. Sentiment around the general increase in prices fell 0.4%, 0.2%, and 0.1% respectively. Interestingly, the three-year-ahead expectation for food prices is the only inflation metric Americans expect to rise. Respondents projected a 0.4% increase in grocery bills in three years, from 5.1% to 5.5%.
Other areas measured by the survey include earnings growth expectations which increased by 0.2% and prospects of higher unemployment which decreased by 3.3%. In other words, compared to April, Americans generally expect lower prices (except for groceries), bigger paychecks, and more jobs over the next one to five years, and that optimism was reflected today in both crypto and stock markets.
Bitcoin Crosses $108K As Tariff Fears Subside
(Data from the NY Federal Reserve Survey of Consumer Expectations for May 2025 showing a decrease in inflation expectations across all three time horizons / NY Federal Reserve Bank)
“While the tariff revenue has been going up, inflation has been coming down, which is contrary to the story that everybody else has been saying, but very consistent with what we’ve been saying,” said Kevin Hasset, director of the National Economic Council, during a Monday CNBC interview.
Overview of Market Metrics
Bitcoin ( BTC) climbed to a fresh weekly high on Monday, jumping 1.70% over the past 24 hours to trade at $108,140.92 at the time of reporting. The price action, which has brought BTC up 3.53% over the past week, occurred within a 24-hour range of $105,400.23 to $108,162.26.
Bitcoin Crosses $108K As Tariff Fears Subside
( BTC price / Trading View)
Trading volume spiked to $48 billion, up by more than 29% from yesterday, but mostly due to the typical post-weekend surge. The cryptocurrency’s market capitalization rose to $2.14 trillion, a 1.77% increase, while BTC dominance ticked up to 64.68%, reinforcing bitcoin’s lead over altcoins.
Bitcoin Crosses $108K As Tariff Fears Subside
( BTC dominance / Trading View)
Futures market enthusiasm also grew, with total BTC open interest climbing 4.94% to $76.27 billion, suggesting traders are positioning for continued upward movement. Meanwhile, derivatives data from Coinglass shows $6.55 million in total liquidations over the past 24 hours, overwhelmingly from short positions. Roughly $6.53 million in shorts were wiped out compared to a sparse $13,100 in long liquidations. Bears clearly miscalculated the momentum.
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