Bitcoin extended its recent decline on Tuesday, dropping further and now trading roughly 50% below its October record high. Ongoing uncertainty surrounding U.S. tariff policy has weakened overall risk appetite, putting additional pressure on cryptocurrencies.
The broader crypto market also remained under strain, as both institutional and retail investors continued reducing their exposure. Rising geopolitical tensions involving Iran and a technology-driven selloff on Wall Street added to the cautious mood.
Bitcoin fell nearly 4% to $63,131.3 by 01:13 ET (06:13 GMT), after touching an intraday low of $62,758.2.
Bitcoin Now 50% Below October Record High
With Tuesday’s losses, Bitcoin is trading about 50% beneath its early-October peak of $126,272. The world’s largest cryptocurrency has struggled to regain momentum since that high, despite new U.S. regulatory measures and continued purchases by major corporate holder Strategy.
On Monday, Strategy revealed it had bought an additional 592 Bitcoin. However, the company remains under pressure, as Bitcoin is currently trading below its reported average acquisition cost of $76,020.
On-chain data from CryptoQuant and Coinglass showed that large holders, commonly referred to as “whales,” have continued transferring substantial amounts of Bitcoin to exchanges — a move often interpreted as preparation for further selling.
At the same time, buying activity has been limited. According to Glassnode, institutional investors recorded a fifth consecutive week of net outflows from spot Bitcoin exchange-traded funds as of Monday, signalling persistent caution.
Trump Tariff Uncertainty Weighs on Crypto Sentiment
The latest weakness in Bitcoin prices comes amid renewed uncertainty over U.S. trade policy. The Supreme Court recently struck down a significant portion of President Donald Trump’s trade tariffs.
In response, President Trump announced a new 15% universal tariff under a different legal framework, although the initial implementation began at 10% from midnight Tuesday. The president has indicated he intends to maintain his tariff strategy and has warned of higher duties for countries seeking to renegotiate trade agreements.
Although cryptocurrencies are not directly tied to global trade flows, they are highly sensitive to shifts in investor sentiment. Concerns about escalating tariffs have triggered broader risk aversion across global financial markets, spilling over into digital assets.
Altcoins Follow Bitcoin Lower
Most major altcoins mirrored Bitcoin’s decline on Tuesday, with little sign of recovery in the sector.
Ether, the second-largest cryptocurrency by market value, fell 2.8% to $1,826.75, remaining close to its early-February lows. XRP dropped 2.6%, while BNB declined 1.4%. Cardano and Solana fell 3.3% and 2.8%, respectively.
Among meme coins, Dogecoin slid 3.6%, and the $TRUMP token eased 0.9%.
