The Cryptocurrency Industry is Undergoing a Major Restructuring
The cryptocurrency industry is currently undergoing a significant restructuring. When Donald Trump assumes office as the 47th President of the United States, the market will witness a surge in Bitcoin (BTC). However, the world’s largest cryptocurrency is moving in an entirely new direction. The king coin has been struggling with its price, currently trading below its historical peak of 109,114.88. This high was reached two months prior in January 2025. Nevertheless, BTC’s recent crash has sent shockwaves through the market.
Bitcoin Struggles to Gain Traction Among New Investors
Source: The Watcher Master
This week has been rough for Bitcoin as asset volatility increases. The king coin traded as high as $87,000 earlier this week. However, earlier today, BTC plummeted to a low of $81,282.10, triggering panic in the market. At the time of writing, the asset is trading at $83,098.02.
Source: CoinMarketCap
Several Reasons Behind Bitcoin’s Recent Collapse
There are several reasons behind Bitcoin’s latest crash, but they mainly revolve around Trump’s tariffs. The imposition of tariffs on imported goods has raised concerns about a global economic downturn. This could lead investors to withdraw from high-risk assets like cryptocurrency. While individuals like Michael Saylor have pointed out Bitcoin’s tax-free status, the asset appears to have been significantly impacted by this news. Saylor’s latest statements emphasize how more experienced investors remain locked into the king coin, while newcomers to the market may panic. According to a recent tweet from analyst Ali Martinez, a staggering 18,930 BTC were sold by short-term holders following Trump’s tariff announcement.
Source: X
Ben Kurland, CEO of the crypto research platform Dyor, further highlighted the situation, telling CNBC, “Bitcoin moves at the intersection of narrative, liquidity, and leverage. Right now, it mostly trades like a high-beta macro asset, tracking real yields, rate expectations, and dollar strength. Yields pulled back, risk assets caught a bid, and Bitcoin responded instantly. It’s not about crypto fundamentals today; it’s about global liquidity signals and positioning. When real rates dip and the dollar softens, Bitcoin breathes.”
