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Bitcoin fell sharply on Tuesday, extending its recent downturn and wiping out roughly half of its value from the record highs seen in October, as uncertainty over U.S. tariff policy and broader risk-off sentiment weighed heavily on cryptocurrency markets.
The world’s largest cryptocurrency dropped nearly 4% to $63,131.3 by 01:13 ET (06:13 GMT), after touching an intraday low of $62,758.2. The move brought Bitcoin back toward levels last seen in early February, underscoring the depth of the ongoing selloff.
Broader crypto markets also remained under pressure, as both institutional and retail investors continued to pare exposure. Sentiment was further dented by heightened geopolitical tensions involving Iran and a renewed, AI-driven selloff on Wall Street, which spilled over into speculative assets.
Bitcoin Loses 50% From Record High as Selling Pressure Mounts
Tuesday’s decline left Bitcoin trading around 50% below its all-time high of $126,272 reached in early October. Since then, the cryptocurrency has been locked in a sustained downtrend, with regulatory uncertainty in the U.S. and persistent buying by major corporate holders failing to stabilize prices.
Top corporate holder Strategy disclosed on Monday that it had purchased an additional 592 Bitcoin. However, the company is currently sitting on substantial unrealized losses, with Bitcoin trading well below Strategy’s average purchase price of $76,020.
On-chain data from CryptoQuant and Coinglass showed that large Bitcoin holders, commonly referred to as “whales,” continued to move sizable volumes of the cryptocurrency onto exchanges—typically a precursor to further selling. At the same time, demand remained weak. Glassnode data indicated that institutional investors have reduced exposure to spot Bitcoin exchange-traded funds for a fifth consecutive week, highlighting persistent outflows from the sector.
Trump Tariff Uncertainty Weighs on Sentiment
The latest leg lower in Bitcoin was driven in large part by renewed uncertainty over U.S. trade policy. The Supreme Court last week struck down a significant portion of President Donald Trump’s tariffs, prompting the administration to respond with a new set of universal duties.
Trump announced 15% tariffs under an alternative legal framework, although the levies initially took effect at a lower 10% rate at midnight on Tuesday. The president has signaled little willingness to retreat from his tariff agenda and has warned countries against reopening negotiations on recently concluded trade deals.
While cryptocurrencies are not directly impacted by trade tariffs, they remain highly sensitive to shifts in global risk sentiment. The renewed trade uncertainty triggered a broader risk-off move across financial markets, weighing particularly heavily on speculative assets such as crypto.
Altcoins Track Bitcoin Lower
Losses across the digital asset space were broad-based. Ether, the second-largest cryptocurrency, fell 2.8% to $1,826.75, hovering near early-February lows.
XRP and BNB declined 2.6% and 1.4%, respectively, while Cardano and Solana slid 3.3% and 2.8%. Meme tokens also weakened, with Dogecoin down 3.6% and the $TRUMP token falling 0.9%.
Overall, the crypto market remained trapped in a deep selloff, with little sign of near-term relief as macroeconomic uncertainty, geopolitical risks, and fading risk appetite continue to dominate investor behavior.
