Bitcoin saw a significant drop on Wednesday, hitting a three-month low. Concerns over U.S. tariffs and their negative impact on the economy, coupled with slowing economic growth, sparked a wave of withdrawals from crypto assets. This prompted investors to reduce their exposure to digital currencies.
Bitcoin continued its decline for the fourth consecutive session, losing about $8,000 of its value over the past week. The initial decline in the currency began after a $1.5 billion hack on the popular Bybit exchange. This hack severely damaged sentiment towards cryptocurrencies in general, and led to increased anxiety among investors.
Bitcoin was down 3.6% at $88,706.9 by 00:51 ET. The cryptocurrency also hit a low of $86,000. Despite the announcement of an additional purchase of Bitcoin by Strategy (NASDAQ: MSTR), one of the largest Bitcoin holding companies in the world, worth $ 2 billion, the currency did not receive much support.
The broader impact on the cryptocurrency market (Bitcoin)
Bitcoin was not the only one affected by this decline, but the impact extended to all cryptocurrencies. The market witnessed significant volatility, and this decline in Bitcoin prices was consistent with the deterioration of the US stock markets. Wall Street also suffered several losses, after US President Donald Trump announced his intention to impose additional tariffs on imports, which increased market tensions.
Later in the week, President Trump raised the issue of imposing new tariffs on copper, which sparked a wave of concerns about the impact of these tariffs on the US economy. This trade tension coincides with questions about the possibility of a slowdown in the US economy in the near future. Data showed that consumer confidence in the United States has declined significantly, indicating a decline in domestic demand, which is a key factor in stimulating economic growth.
Bitcoin ETFs See Record Outflows
On the other hand, Bitcoin ETFs listed on US exchanges saw significant capital outflows this week, reflecting investors’ significant moves to reduce exposure to high-risk crypto assets. Outflows of $1 billion were recorded on Tuesday, the largest outflow since March 2024.
The data showed that funds such as Bitcoin Origin and iShares Bitcoin Trust saw the largest single-day outflows, with $344.7 million and $164.4 million, respectively. This reflects institutional investors’ continued efforts to reduce their positions in cryptocurrencies amid the market’s high volatility.
Altcoins Stabilize, Memecoins Recover
As for other cryptocurrencies, some altcoins have shown relative stability after recent losses. For example, Ethereum rose 0.5% to $2,492.69, while Ripple gained 1.9% to $2.2923. Other coins such as Solana, Cardano, and Polygon saw gains ranging between 2% and 5%.
Meanwhile, meme coins such as Dogecoin, Shiba Inu, and some tokens on Solana saw a slight recovery after major corrections. Despite these slight improvements, the sentiment in the crypto market remained weak overall.
Maker’s Resistance: Maker Shows Resilience
Among the cryptocurrencies that showed resilience amid the market downturn, Maker led the way after recording a 12% gain this week. Maker reached around $1,680 on Wednesday, after surging 17% in value the previous day.
Maker continues to perform positively, supported by a rise in the number of active addresses on its blockchain. It also recorded a significant increase in transaction volume and revenue, reinforcing positive expectations for the future of the currency. The “Santiment” indicator shows that activity on the “Maker” network has increased by 37% this week, indicating increasing demand for using this network.
Implications for the currency market (Bitcoin)
The overall cryptocurrency market has been going through a period of major challenges that have significantly impacted customer traffic and the general sentiment among investors. The recent decline in the price of Bitcoin and other currencies is a clear indicator of the market’s improvement, which reflects more and more reluctance from many investors. This is because it is still in sufficient chain and liquidation for football players, which leads to major changes in clarity.
First, it is worth noting that altcoins may be greatly affected by digital currency, as many of these currencies cause significant losses. For example, currencies such as Ethereum and Ripple have seen a significant decline in relation to, and thus with the decline in sentiment in the market. And it has data such as “Nansen” that there is reluctance from many common currencies, which directly contributes to the volume of play in many other currencies.
This sky in the market was not limited to altcoins only, but extended to the meme coin market, such as Dogecoin and Shiba Inu, which also witnessed major corrections in tasks. Despite some major disasters in these currencies, the pressure on the general output in the year has slowed down its habit. One of the most noticeable reflections is the increase in liquidations in derivatives markets. According to Coinglass data, professional footballers stand out for $746 million in 24 hours, reflecting Brighton’s veto on Twitter, which described them as a few designs
Impact of economic data and political decisions
The economic factor and political decisions continue to play a major role in directing these entities in the cryptocurrency market. For example, the damage caused by the new viral infections and coronavirus by the US government has contributed to complicating the situation.
