The cryptocurrency market experienced a strong downturn after Trump's latest customs announcement, causing significant losses of up to 509 million USD. Bitcoin dropped to 82,352 USD, as traders tried to defend the 83,000 USD mark, but quickly declined after temporarily returning to 88,000 USD. Not only BTC was impacted. The entire cryptocurrency market fell 3.43%, with Ethereum dropping over 6% and Solana declining 6.6%. Despite a slight recovery around 82,000 USD, pressure remains high. While cryptocurrencies are struggling amid the trade war, capital inflows into Bitcoin ETF rebounded, with a net increase of 220 million USD as investors overlooked Trump's retaliatory tax concerns to take advantage of the BTC price drop.
The roles of Fidelity and Ark Invest Bitcoin ETFs were prominent with inflows of 119 million USD and 130 million USD respectively, while BlackRock saw a significant outflow of 116 million USD. Institutional demand increased, fueling confidence in Bitcoin's long-term potential. Global Bitcoin ETFs are holding 1.3 million Bitcoin, representing 6.2% of total BTC supply. This reflects fresh confidence among large institutions, viewing Trump's taxes as a "buy the dip" opportunity rather than a long-term risk.
Meanwhile, publicly listed companies are consolidating their positions with 696,456 BTC. Just in the previous week, eight companies added 26,303 BTC to their reserves. Michael Saylor's MicroStrategy and Japan's Metaplanet are leading the race, making big bets on the cryptocurrency giant's future.
Despite positive ETF signals, Bitcoin faced a sharp price drop after Trump's announcement, falling from 88,000 USD to 81,000 USD. However, trading volume surged 85%, reaching 54 billion USD, indicating continued investor interest. Currently, BTC is trading at 83,394 USD, with a market capital of 1.65 trillion USD.
According to cryptocurrency analyst Ali Martinez, an important trading range is identified between 86,900 USD and 84,800 USD. He suggests that whichever side breaks first on the hourly chart could determine Bitcoin's next major movement. Institutional players have returned to accumulation mode, with the market watching whether BTC will overcome resistance or face another potential price decline.
Overall, while Bitcoin's price remains volatile, institutional investors seem undeterred by regulatory developments and continue to view BTC as a valuable long-term asset. The coming weeks will reveal whether this renewed confidence can elevate Bitcoin to new heights.
