The cryptocurrency industry is currently undergoing an immense shake-up. The market was all set to witness Bitcoin (BTC) soar as Donald Trump took over as the 47th President of the US. But the world’s largest cryptocurrency was moving in a whole new direction. The king coin has been struggling in terms of price and is currently trading 23% below its all-time high of $109,114.88. This peak was achieved just two months ago in January 2025. But BTC’s latest crash came as a huge shock to the market.
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Bitcoin Strives To Move Forward Among New Investors
This week has been rough for Bitcoin as the asset is experiencing increased volatility. The king coin was trading at a high of over $87,000 earlier this week. But earlier today, BTC dropped to a low of $81,282.10 causing panic in the market. At the time of writing, the asset was trading at $83,098.02.
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There are several reasons for Bitcoin’s latest crash. But all of them primarily surround Trump’s tariffs. Concerns about a worldwide economic downturn have been aroused by the imposition of tariffs imposed on imported products. This can further caused investors to pull out of high-risk assets like cryptocurrencies. While individuals like Michael Saylor have pointed out how Bitcoin is free of tariffs, the asset seems to be heavily impacted by the news alone.
Saylor’s latest statement highlights how more experienced investors are still locked in the king coin. But newbies who have just entered the market are likely panicking. According to a recent tweet by analyst Ali Martinez, a staggering 18,930 BTC were reportedly sold by short-term holders just after Trump’s tariff announcement.
Further highlighting the latest scenario, Ben Kurland, CEO of crypto research platform DYOR told CNBC,
“Bitcoin moves at the intersection of narrative, liquidity, and leverage. Right now, it’s mostly trading like a high-beta macro asset, tracking real yields, rate expectations, and dollar strength. Yields pulled back, risk assets caught a bid, and Bitcoin responded instantly. It’s not about crypto fundamentals today, it’s about global liquidity signals and positioning. When real rates dip and the dollar softens, Bitcoin breathes.”
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