Bitcoin (COIN:BTCUSD) declined again on Tuesday, extending its recent downturn and leaving the cryptocurrency trading roughly 50% below its record high reached in October, as uncertainty surrounding U.S. trade policy continued to weigh on investor risk appetite.
The wider cryptocurrency market also remained under pressure, with both institutional and retail participants trimming positions. Escalating geopolitical tensions tied to Iran, combined with a technology-led selloff on Wall Street driven by artificial intelligence concerns, further dampened sentiment across digital assets.
Bitcoin fell close to 4% to $63,131.3 at 01:13 ET (06:13 GMT), after earlier slipping to an intraday low of $62,758.2.
Bitcoin retreats sharply from record levels amid tariff worries
Following the latest decline, Bitcoin is now trading about 50% below its early-October peak of $126,272.
The world’s largest cryptocurrency has struggled to regain momentum since then, as tighter U.S. regulatory developments and continued accumulation by major corporate holder Strategy have failed to stabilise market confidence.
Strategy announced on Monday that it had purchased an additional 592 Bitcoin. The company is currently facing sizeable unrealised losses, with Bitcoin trading below its average acquisition price of $76,020.
Blockchain data from CryptoQuant and Coinglass indicated that large holders — commonly referred to as “whales” — have continued transferring significant quantities of Bitcoin to exchanges, signalling potential further selling activity.
At the same time, buying interest appears limited. Glassnode data showed institutional investors recorded a fifth consecutive week of outflows from spot Bitcoin exchange-traded funds as of Monday, highlighting ongoing institutional selling pressure.
Trade policy uncertainty adds pressure as new tariffs begin
Bitcoin’s latest weakness has largely been attributed to uncertainty surrounding U.S. trade policy after the Supreme Court struck down much of President Donald Trump’s tariff framework.
Trump responded by proposing universal tariffs of 15% under an alternative legal structure, although the measures initially took effect at a 10% rate starting at midnight Tuesday.
The president now faces increased legal scrutiny over future tariff actions but has shown little sign of retreating from his trade agenda. He also warned that countries attempting to renegotiate recently agreed trade deals with the United States could face higher tariffs, cautioning partners not to “play games.”
Although cryptocurrencies are not directly impacted by trade measures, they tend to move in line with broader shifts in market sentiment given their speculative nature. The uncertainty surrounding U.S. tariffs has therefore contributed to rising risk aversion across global markets.
Crypto market today: altcoins remain under pressure
Most alternative cryptocurrencies followed Bitcoin lower on Tuesday, with the sector showing limited signs of recovery after weeks of declines.
Ether, the second-largest cryptocurrency by market value, fell 2.8% to $1,826.75, remaining close to levels last seen in early February.
XRP and BNB dropped 2.6% and 1.4%, respectively, while Cardano and Solana declined 3.3% and 2.8%.
Among meme tokens, Dogecoin slid 3.6%, while $TRUMP edged down 0.9%.
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