Bitcoin (BTC) Markets Experienced a Significant Downturn

Crypto markets experienced a significant downturn, notably Bitcoin's drop, following Trump's tariff announcement, but saw increased trading volume.

Crypto markets experienced a significant downturn, notably Bitcoin's drop, following Trump's tariff announcement, but saw increased trading volume.

Bitcoin ETFs rebounded with substantial inflows, indicating institutional investors are "buying the dip" and retain long-term confidence.

Bitcoin price is currently down 0.7% in the past 24 hours, with the market capitalization standing at $1.65 trillion.

The cryptocurrency market took a major hit after President Donald Trump’s latest tariff announcement. kicking off the day with a 3.43 percent decrease.

The crypto market, known for its volatility, saw a rapid shift in sentiment after President Donald Trump announced the latest round of tariffs, this time targeting goods from Vietnam, impacting the market with $509 million in value wiped out within a few hours.

The crypto market experienced a significant downturn, notably Bitcoin’s drop, but also saw increased trading volume.

Bitcoin ETFs also rebounded with substantial inflows, suggesting institutional investors may be ‘buying the dip’ and still have long-term confidence.

What Happened to Bitcoin and the Crypto Market Today?The crypto market saw a downturn, with total market capitalization decreasing by 3.43 percent to $1.65 trillion by 8:35 AM (GMT+8).

The crypto market experienced a rapid shift in sentiment after President Donald Trump announced the latest round of tariffs, this time targeting goods from Vietnam, impacting the market with $509 million in value wiped out within a few hours.

The tariffs sparked a sell-off, pushing Bitcoin down from $83,000 to $82,352. It briefly climbed back to $88,000 as traders tried to salvage the $83,000 level. However, the selling pressure continued, and Bitcoin slipped further, adding to market uncertainty.

Bitcoin wasn’t the only one feeling the impact. Ethereum fell over 6 percent, Solana lost 6.6 percent, and other major cryptocurrencies also saw significant declines.

Despite a small rebound near $82,000, selling pressure remains high, keeping investors cautious. But while panic spread among some traders, others saw an opportunity.

What Is Surprising Some Investors Today?While the market reacted negatively to the tariff news, Bitcoin ETF inflows bounced back in a big way.

Investors saw the price drop as an opportunity, pouring in $220 million in fresh capital into Bitcoin ETFs. This suggests institutional investors are still confident in Bitcoin’s long-term potential and may be taking advantage of the recent price dip to increase their holdings.

The rapid recovery of Bitcoin ETF inflows comes after a slow start to the week.

Among the major institutional investors, Fidelity’s FBTC and Ark Invest’s ARK saw the largest inflows with $119 million and $130 million, respectively. On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT) experienced significant outflows of $116 million.

The varied actions of these investors suggest some are taking a more cautious approach, while others are actively seeking to expand their Bitcoin positions.

What Is the Impact of Trump's Tariffs on Bitcoin?The recent price movements and institutional activity follow a period of speculation about Trump’s potential tariff announcement.

Earlier reports indicated that Trump could impose tariffs on goods from Vietnam, which is a major manufacturing hub for several U.S. companies. The tariffs were expected to impact a wide range of products, from apparel and footwear to furniture and electronics.

The announcement of the tariffs had an immediate impact on the stock market, with U.S. futures sliding after a recent rally. Among the biggest bank stocks, Goldman Sachs and JPMorgan Chase saw declines of 1 percent each, while Citigroup shares moved down by 0.6 percent.

Despite the small rebound in Bitcoin price and the surprising figures in Bitcoin ETF inflows, the market is still digesting the implications of Trump’s latest trade policies.

As the world’s leading cryptocurrency, Bitcoin has been a subject of intense interest, especially from institutional investors who are increasingly allocating capital to alternative assets.

Publicly traded companies alone now hold 696,456 BTC in total. In the past week, eight companies added 26,303 BTC to their holdings, highlighting the ongoing accumulation by these investors.

Among the most active investors are Michael Saylor’s MicroStrategy, which is on a mission to become one of the largest Bitcoin holders, and Japan’s Metaplanet, which is rapidly expanding its cryptocurrency treasury.

These companies are showcasing their strong confidence in Bitcoin’s future as a store of value and a hedge against inflation in a rapidly changing macroeconomic landscape.

What Is the Latest on Bitcoin Price and Volume?Bitcoin price slipped further after Trump's tariff announcement, sliding from $88,000 to $81,000. However, instead of scaring investors