The crypto industry is currently going through a major shakeup. As Donald Trump became the 47th president of the United States, the market expected Bitcoin (BTC), to soar. But the world’s largest cryptocurrency was moving in a whole new direction. Price-wise, the king coin is trading at a 23% discount to its previous high price of $109114.88. It was only two months before, in January of 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
Bitcoin’s volatility has increased this week. This week the price of Bitcoin reached an all-time high. BTC fell to an all-time low today of $81,282.10, causing panic on the stock market. As of the writing, this asset traded 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. Imposition of tariffs on imported goods has sparked concerns about an economic recession worldwide. It can also cause investors to withdraw from assets with high risk, such as cryptocurrencies. Michael Saylor, for example, has stated that Bitcoins are free from tariffs. However the value of this asset appears to have been heavily affected just by news.
Saylor’s latest statement highlights how more experienced investors are still locked in the king coin. However, newbies that have recently entered the market may be in a panic. 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.
Ben Kurland CEO of the crypto research platform DYOR, told CNBC that he would like to highlight this latest scenario.
“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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Source: watcher.guru
