Bitcoin (COIN:BTCUSD) declined on Tuesday, extending its recent slide and now trading roughly 50% below its record high reached in October, as uncertainty surrounding U.S. trade policy dampened investor appetite for risk assets including cryptocurrencies.
The broader crypto market also remained under pressure, with both institutional and retail investors continuing to reduce exposure. Rising geopolitical tensions involving Iran, alongside an artificial intelligence–driven selloff in U.S. equities, further weakened market sentiment.
Bitcoin dropped nearly 4% to $63,131.3 by 01:13 ET (06:13 GMT), after earlier falling to an intraday low of $62,758.2.
Bitcoin halves from record high as tariff concerns weigh
Following Tuesday’s decline, Bitcoin is now trading about 50% below its early-October record peak of $126,272.
The world’s largest cryptocurrency has remained in a sustained downtrend since that high, with new U.S. regulatory developments and continued purchases by major corporate holder Strategy failing to stabilise sentiment.
Strategy revealed on Monday that it had acquired an additional 592 Bitcoin. The company is currently facing significant unrealised losses on its holdings, as Bitcoin trades below its average acquisition cost of $76,020.
On-chain data from CryptoQuant and Coinglass indicated that large Bitcoin holders — commonly referred to as “whales” — have continued transferring substantial volumes of the cryptocurrency onto exchanges, suggesting further selling pressure.
Meanwhile, demand from large buyers appears limited. Data from Glassnode showed institutional investors recorded a fifth consecutive week of outflows from spot Bitcoin exchange-traded funds as of Monday, pointing to persistent institutional selling.
Trump tariff uncertainty weighs as new duties begin
Recent weakness in Bitcoin has been largely driven by 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 a different legal authority, although the measures initially took effect at a 10% rate starting at midnight Tuesday.
The president now faces increased legal scrutiny over his ability to impose and expand tariffs but has indicated little willingness to retreat from his trade agenda. He also warned trading partners they could face higher tariffs if they attempted to renegotiate recently agreed deals with Washington.
Although cryptocurrencies are not directly impacted by trade measures, they tend to react strongly to shifts in broader market sentiment due to their highly speculative nature. Uncertainty around U.S. tariffs has therefore contributed to increased risk aversion across global markets.
Crypto prices today: altcoins follow Bitcoin lower
Most alternative cryptocurrencies moved lower alongside Bitcoin on Tuesday, with the market showing few signs of recovery after an extended period of declines.
Ether, the world’s second-largest cryptocurrency, fell 2.8% to $1,826.75, remaining close to lows seen in early February.
XRP and BNB declined 2.6% and 1.4%, respectively, while Cardano and Solana dropped 3.3% and 2.8%.
Among meme tokens, Dogecoin lost 3.6%, while $TRUMP slipped 0.9%.