Bitcoin (BTC) Market Drops 6% After President Donald Trump Announces New Tariffs

The cryptocurrency market faced a sharp decline after President Donald Trump announced new tariffs, triggering a sell-off that wiped out around $509 million in value.

The cryptocurrency market experienced a sharp downturn on Tuesday after President Donald Trump announced new tariffs, triggering a sell-off that wiped out around $509 million in value.

The administration's decision to impose tariffs on solar panels and set limits on H-1B visas sparked a selloff in cryptocurrencies. Bitcoin, the world's largest cryptocurrency, took a hit, plunging by 2.1% to $82,352 as traders struggled to maintain the $83,000 support level.

Earlier in the day, Bitcoin briefly bounced back to $88,000 after slipping below $80,000, offering a glimmer of hope for bulls. However, the price slipped again later in the morning, remaining above the crucial $82,000 zone amid ongoing uncertainty.

Other cryptocurrencies followed suit, with Ethereum dropping more than 6% and Solana declining by 6.6%. Although Bitcoin showed signs of stabilizing around $82,000, the crypto market faced ongoing selling pressure, keeping investors on edge.

While some panicked, selling off their crypto holdings in response to the institutional outflows and the turbulence in the market, others took the downturn as a chance to make strategic moves.

Institutional players seemed largely unfazed by the turbulence, engaging in a round of trading activity that saw both inflows and outflows. Bitcoin ETFs, which initially showed sluggish inflows, made a surprising comeback as big investors took advantage of the market's weakness.

Notably, Fidelity’s FBTC and Ark Invest’s ARK saw significant inflows of $119 million and $130 million, respectively, while BlackRock’s IBIT faced $116 million in outflows. This mixed response highlights a divide between cautious and bullish perspectives among institutional investors.

Despite the market’s volatility, large-scale buyers continued accumulating Bitcoin. Prominent companies, including those led by Michael Saylor and Japan’s Metaplanet, have been steadily boosting their holdings, signaling long-term confidence in the asset.

Recent data shows that eight companies collectively acquired over 26,000 BTC last week alone, reinforcing Bitcoin’s growing appeal as a strategic investment.

The price swings did not dampen trading activity. On the contrary, Bitcoin’s trading volume surged by 85%, reaching $54 billion, as market participants took advantage of the fluctuations.

Currently, Bitcoin is priced at around $83,394, maintaining a market cap of $1.65 trillion.

Analysts are now focusing on whether Bitcoin can break through resistance at $86,900 or if it might face further declines. The situation remains fluid, but the steady accumulation by major investors suggests they view Bitcoin’s long-term prospects positively despite short-term challenges.