Bitcoin Falls Below $63,000 as Crypto Market Slump Deepens

Bitcoin Falls Below $63,000 as Crypto Market Slump Deepens

World’s largest cryptocurrency now 50% below October peak amid US tariff uncertainty and investor outflows

Bitcoin has fallen below $63,000, extending its recent decline and now trading roughly 50% below its October record high. The sharp pullback highlights weakening risk appetite across cryptocurrency markets as geopolitical tensions and uncertainty around US trade policy weigh on investor confidence.

The latest drop comes as institutional investors continue to reduce exposure to digital assets and large holders move significant amounts of Bitcoin onto exchanges — often a signal of potential selling pressure.

Bitcoin Price Today: 50% Below Record High

Bitcoin was down nearly 4% in early trading, slipping to around $63,131 after touching intraday lows near $62,758. The cryptocurrency is now approximately half the value of its October peak of $126,272.

Key drivers behind the decline include:

• Heightened uncertainty over US trade tariffs and global economic stability
• Continued outflows from Bitcoin exchange-traded funds (ETFs)
• Large “whale” holders transferring coins to exchanges, increasing selling pressure
• Broader weakness in global equities, particularly technology and AI stocks

On-chain data from analytics firms shows institutional investors have reduced holdings in spot Bitcoin ETFs for five consecutive weeks, indicating sustained risk reduction.

US Tariff Uncertainty Dampens Risk Appetite

The downturn in crypto markets coincides with renewed volatility in US trade policy. Legal challenges to proposed tariffs and subsequent announcements of revised duties have added uncertainty to financial markets.

Although cryptocurrencies are not directly tied to trade flows, they are highly sensitive to overall market sentiment. When investors become risk-averse, speculative assets such as Bitcoin and altcoins often see accelerated selling.

This environment has also weighed on growth stocks and AI-related shares, further reinforcing a broader risk-off tone.

Altcoins Track Bitcoin Lower

The weakness is not limited to Bitcoin. Most major cryptocurrencies have followed suit:

• Ether fell nearly 3%, remaining close to recent lows
• XRP and BNB declined modestly
• Cardano and Solana saw sharper drops of over 2–3%
• Meme coins, including Dogecoin, also extended losses

The broad nature of the decline suggests market-wide caution rather than isolated weakness.

Impact on Crypto-Related Shares

The fall in Bitcoin could have knock-on effects for listed companies with exposure to digital assets.

Potential impacts include:

• Pressure on crypto mining stocks due to reduced profitability expectations
• Weakness in companies holding Bitcoin on their balance sheets if asset values fall
• Softer trading volumes for crypto exchanges, affecting revenue forecasts
• Increased volatility in fintech shares linked to digital asset transactions

For example, firms with significant Bitcoin holdings may see mark-to-market losses, which could weigh on quarterly earnings reports and share valuations.

What This Means for Investors

Bitcoin’s 50% decline from its peak reflects how quickly sentiment can shift in speculative markets. While long-term believers may view the pullback as a consolidation phase, short-term traders face elevated volatility.

Investors should monitor:

• ETF inflow and outflow trends
• Large wallet activity and exchange balances
• US macroeconomic developments and Federal Reserve policy signals
• Equity market performance, particularly technology stocks

If global risk appetite improves and institutional buying returns, Bitcoin could stabilise. However, continued uncertainty around trade policy and macro conditions may keep crypto markets under pressure in the near term.

For now, the cryptocurrency market remains highly sensitive to broader financial sentiment, reinforcing its role as a risk asset rather than a defensive hedge.

Sources: (Investing.com, Reuters.com)