Bitcoin News: Trump’s Tariff Plans and Bybit Hack Impact Bitcoin Prices, But Drop Deemed ’Modest’

President Trump’s tariff announcements on various countries and the subsequent economic uncertainty had a significant impact on the cryptocurrency market, with Bitcoin facing particular challenges. Despite a brief recovery, the crypto market resumed its downward trajectory, exacerbated by massive liquidations and a major hack. However, data indicates that Bitcoin’s 11% drop is still considered ’modest’ in the context of these developments.

How Trump’s Tariff Plans Affected Bitcoin Prices

Bitcoin struggled as market sentiment worsened amid President Trump’s tariffs and economic uncertainty. The crypto market resumed its downward trajectory after a brief recovery from the turbulence triggered by Trump’s tariff announcements on Canada, Mexico, and the European Union. Massive liquidations and the Bybit hack intensified panic, erasing billions from crypto markets.

Data Shows Bitcoin’s 11% Drop Is Still ‘Modest’

The largest cryptocurrency in the world, Bitcoin has plunged a dramatic 11% from its all-time high. Although some investors might find this price devaluation alarming, historical data indicates that it is really small in respect to the other market cycles of the cryptocurrencies. Bitcoin has seen many corrections since its inception, with abrupt declines and rises being a common occurrence. Between January 2012 and December 2017, the value of Bitcoin dropped more than 10% on at least 13 occasions, some causing market value losses of billions of dollars before rebounding.

Bitcoin’s Peak Is Still Far Off, Analyst Predicts Huge Year

A crypto analyst, Chapo, CEO of Assure DeFi, believes Bitcoin’s price still has room to grow. He used the Market-Value-to-Realized-Value (MVRV) ratio to evaluate Bitcoin’s price and found it is not yet in overvalued territory. Historical data suggests Bitcoin’s MVRV must climb higher before a market top is confirmed. Currently, Bitcoin’s MVRV ratio stands at 1.95, well below the “danger zone,” indicating the market may not be overheated yet. Chapo predicts a peak MVRV this cycle around 3.2.

Why Crypto Market Is Falling Today? Reasons Behind Crypto Crash

The global cryptocurrency market is experiencing a notable downturn with a 2.46% decrease in the overall market cap to $2.87T. Trading volume has increased by 9.82% to $160.16B in the past 24 hours, with stablecoins accounting for 94.03% of this volume. Key reasons behind the downturn include significant outflows from U.S. spot Bitcoin ETFs for the seventh consecutive day, with nearly $2.99 billion withdrawn in the past week.

Crypto Market Decline Today

The crypto market experienced a 2.19% decline today, with the global market cap falling to $2.87T. The Fear & Greed Index plunged to 10, reflecting Extreme Fear among investors. Major reasons behind the crash include regulatory uncertainty from the SEC’s aggressive stance on crypto firms, whale sell-offs, and interest rate fears due to Fed policies affecting risk assets.