Bitcoin plunges to $85,600 as the crypto market sheds $800B, driven by ETF outflows, memecoin crashes, and regulatory disappointment.
Crypto Market Faces $800B Wipeout
The crypto market has lost over $800 billion in recent weeks, with Bitcoin dropping 15% in a month to $84,000. Investor confidence has weakened due to sluggish regulatory progress under Trump, major security breaches, and an exodus from crypto ETFs.
Trump’s Crypto Promises Fall Short
Despite hopes that Trump’s presidency would usher in pro-crypto policies, his administration has yet to deliver substantial reforms. Instead, his January memecoin launch, which has since collapsed by 83%, has drawn criticism.
Memecoin Bubble Bursts, Ethereum Takes a Hit
The collapse of memecoins linked to Trump and Argentina’s President Javier Milei has exacerbated market instability. Ethereum has fallen 23% in the past month, while Solana, which underpins many memecoins, is down 42%.
Bybit Hack Shakes Market Confidence
The $1.5B Ethereum hack at Bybit, the largest crypto exchange theft to date, has reignited concerns over the security of digital assets, adding to the ongoing market turmoil.
Institutional Investors Face Losses
Bitcoin ETFs saw record outflows of nearly $1B, with buyers since Trump’s election now sitting on collective losses of $1.3B. Analysts warn that without renewed institutional interest, the market may struggle to recover.
Bitcoin Faces Limited Support Between $75K and $85K
BTC price struggles due to weak support in the $75K-$85K range.
Alex Thorn, Head of Research at Galaxy Digital, warned:
“There’s mostly air between $75-85K. Almost no coins were moved onchain in that range, as we rocketed through it very quickly in Nov. Market may want to test that range. 200d MA is $81.6, which could provide support if we test it.”
Cryptocurrency Selloff Extends Beyond Bitcoin
The broader cryptocurrency market faced losses. Ether (ETH) fell to $2,330, while BNB and Solana also recorded declines amid the ongoing selloff.
Inflation Concerns Grow as Tariffs Loom
The new tariffs could drive inflation higher, increasing costs for consumers and businesses.
The Kobeissi Letter reported that a 25% tariff could add $3,000 to some of the 16 million cars sold in the U.S. annually. Additionally, food prices may rise since Mexico supplies over 60% of fresh produce to the U.S.
Gold Gains While Bitcoin Falls
Bitcoin’s decline contrasts with gold’s surge, raising concerns over its safe-haven status.
“Our premium members have cashed in multiple gold LONGS, including multiple dip buys in 2025,” The Kobeissi Letter noted. “We recently called for $2,950+ which officially hit last week.”
Bitcoin’s Role as a Hedge Faces Scrutiny
Bitcoin’s performance raises questions about its reliability as a hedge during economic uncertainty.
While BTC has dropped 10% since the tariff announcement, gold has risen 10%, suggesting investors may be favoring traditional safe-haven assets.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
