Bitcoin Faces Mounting Pressure Amid Global Trade Concerns

Cryptocurrency market loses $100B as Trump's 15% tariff proposal triggers risk-off sentiment. Bitcoin tests support, ETFs see outflows, but infrastructure deals advance.

The cryptocurrency market is navigating significant headwinds, with Bitcoin struggling to find stable footing. The primary catalyst for the recent downturn stems not from within the crypto ecosystem, but from a shift in global trade policy, casting a shadow over investor sentiment during the weekend.

Trade Policy Shifts Rattle Markets

A key development driving the risk-off mood was a proposal from former U.S. President Donald Trump to raise baseline global tariffs to 15%. Such geopolitical signals have stoked fears of increased uncertainty and potential strain on international commerce. In these environments, investors typically move to de-risk their portfolios, often shedding more volatile assets first.

This shift in sentiment had a tangible impact. Reports indicate the total cryptocurrency market capitalization shed approximately $100 billion within a 24-hour period. The pressure was not isolated to Bitcoin, as Ether also experienced notable declines. Analysts point to a confluence of factors behind the move, including thin market liquidity, a lack of strong conviction among buyers, and the fresh uncertainty introduced by the trade policy discussions.

Key Price Levels and Technical Outlook

From a technical perspective, market observers are closely watching the $60,000 zone as a crucial area of support. On the upside, a decisive move back above $70,000 is widely seen as necessary to shift momentum meaningfully back in favor of the bulls. At the time of reporting, Bitcoin is trading at $66,263, marking a substantial decline for the month.

Institutional Outflows and Whale Activity

Concurrent with the price action, institutional interest has shown signs of waning in recent weeks. U.S. spot Bitcoin ETFs have recorded net outflows for five consecutive weeks, according to data, totaling $3.8 billion over that span. The past week alone saw withdrawals of $316 million. Notably, the BlackRock iShares Bitcoin Trust (IBIT) experienced significant outflows, accounting for $2.13 billion of the total over the five-week period.

On-chain metrics further suggest heightened activity from large holders. The Exchange Whale Ratio has climbed to 0.64, its highest level since 2015. This indicator is interpreted as a sign that selling pressure is increasingly originating from major investors, who are moving coins to exchanges to manage their exposure.

Infrastructure Matures Despite Weak Sentiment

Interestingly, the market's weak price action contrasts with continued maturation in Bitcoin-linked financial infrastructure. Crypto lender Ledn has completed a $188 million asset-backed securities (ABS) transaction, secured by Bitcoin-collateralized retail loans. The deal securitized 5,441 loans backed by over 4,000 BTC. In a significant step for crypto lending structures, S&P Global Ratings assigned a BBB- investment grade rating to the $160 million Class-A notes.

Meanwhile, competition in Europe is intensifying on the cost front. CoinShares has permanently reduced the management fee for a physically-backed Bitcoin exchange-traded product (ETP) from 0.25% to 0.15%, with the change taking effect immediately.