Bitcoin (BTC) Is on Track for Its Worst Month in 3 Years, Falling 22%

Bitcoin (BTC) is on track for its worst month in three years, falling 22% as President Donald Trump's tariffs on major U.S. trading partners raise concerns of faster inflation.

Bitcoin (BTC) is heading for its worst month in three years as President Donald Trump's tariffs on major U.S. trading partners continue to weigh on the cryptocurrency.

The flagship cryptocurrency is down 22% in June, the steepest slide since the month ended May 2019. The last time BTC fell this much in a single month was in March 2020, when it fell by more than a third.

Tariffs disrupt markets, and often lead to faster inflation, reduced chance of interest-rate cuts and lower appetite for risky investments. They also tend to increase volatility in financial markets.

This week alone, bitcoin has slid almost 18%, the largest such move since the week ended Nov. 13, 2020.

The slide leaves investors who've bought bitcoin this year in the red. The average purchase price is since the start of January, while BTC dropped below $80,000 earlier Friday, leaving average buyer some 18% worse off.

However, it's not uncommon for investors to face some unrealized losses at the start of the year. It happens when the price of bitcoin falls below the cost basis of the recipients before recovering later in the year.

On-chain data from Glassnode indicates that realized losses escalated as the price fell. Over the past three days, about $1 billion in realized losses have been recorded daily — the most since August's yen carry trade unwind, when bitcoin fell to $49,000.

Additionally, a whopping $1.1 trillion has been wiped off the crypto market cap, taking the total to $2.59 trillion, according to TradingView metric, Total.