By Hana Yamamoto
Bitcoin continued to weaken on Tuesday, extending a decline that has erased roughly half of its value since a record high earlier in October. By 01:13 ET (06:13 GMT) the world’s largest cryptocurrency had fallen nearly 4% to $63,131.3, after slipping as low as $62,758.2 earlier in the session.
Price decline and broader selling
The recent slide has driven Bitcoin to a level about 50% below its early-October peak of $126,272. The downturn has been accompanied by broader selling across digital assets, as both institutional and retail traders reduced exposures. Market participants cited a combination of policy uncertainty and risk-off flows that have weighed on risk appetite for crypto instruments.
On-chain analytics providers CryptoQuant and Coinglass reported large transfers of Bitcoin from significant holders - commonly referred to in the industry as "whales" - onto exchanges, a move commonly interpreted as preparation to sell. Meanwhile, Glassnode data indicated that institutional investors continued to redeem spot Bitcoin exchange-traded funds for a fifth straight week as of Monday, signaling steady outflows from what has been a key institutional access point to spot BTC.
Corporate holder activity
One of the largest corporate holders in the market disclosed an additional purchase of 592 Bitcoin on Monday. Despite the fresh acquisition, the company is carrying unrealized losses: Bitcoin is trading well below its average cost for that holder, reported to be $76,020.
Policy uncertainty and market sentiment
Analysts and traders pointed to renewed uncertainty over U.S. tariff policy as a proximate factor behind the risk-off mood. The U.S. Supreme Court struck down large portions of President Donald Trump’s prior trade tariffs. In response, the president announced a new universal tariff rate of 15% under an alternative legal approach, though the levies were implemented at 10% at midnight Tuesday. The shift in legal footing increases the legal hurdles for imposing and raising tariffs, while the president has signaled he does not intend to retreat from his tariff agenda and has warned of higher duties for countries that seek to renegotiate trade arrangements.
While trade tensions do not directly alter the fundamentals of cryptocurrencies, such policy uncertainty can depress overall market sentiment. Given the speculative nature of many crypto holdings, a spike in risk aversion linked to tariff uncertainty has coincided with broader selling across financial markets, which in turn has spilled into crypto.
Altcoin performance
Most major altcoins tracked lower alongside Bitcoin on Tuesday. Ether fell 2.8% to $1,826.75, remaining near its early-February lows. XRP and BNB declined 2.6% and 1.4%, respectively. Cardano and Solana posted losses of 3.3% and 2.8%. Among memecoins, Dogecoin fell 3.6%, while the token using the symbol TRUMP slipped 0.9%.
Market implications and near-term outlook
Market flows suggest an ongoing imbalance between sellers and buyers. Large transfers to exchanges, sustained ETF redemptions by institutional investors, and limited visible demand from either institutional or retail participants have left prices exposed. Heightened geopolitical tensions, notably concerns over Iran, combined with volatility linked to an AI-driven selloff on Wall Street, have added to a cautious investor stance across risk assets.
For now, the market lacks clear signs that demand will step in to absorb the elevated supply, leaving major cryptocurrencies vulnerable to further downside until sentiment stabilizes or significant buying interest reappears.