The crypto market downturn intensified on Tuesday as Bitcoin (BTC) hovered around $63,000, while Ethereum (ETH), Ripple (XRP), and Solana (SOL) each declined by more than 4% in the past 24 hours. The total market capitalization of all tokens tracked by CoinMarketCap slipped 4.23% over the last day to just over $2.18 trillion. A broad risk-off stance appears to be taking hold this week, supported by a VIX jump of more than 15% on Monday as the US stock market fell by over 1%. Gold prices continued higher, inching toward all-time highs, underscoring a shift away from risk assets.
The broader mood has also been dampened by concerns in the artificial intelligence sector, weighing on major names like IBM, Microsoft, and Salesforce. Historically, crypto tends to underperform when equities are weak.
The drop follows the implementation of new tariffs under the Trump administration, including a 10% tariff on goods entering the United States under Section 122, with additional duties being considered after several investigations. Futures open interest has continued to retreat, while spot BTC outflows jumped to over $203 million on Monday, bringing the four-month total to more than $7 billion. Ethereum ETF outflows have also accelerated. On the technical front, BTC formed a bearish pennant and remains below all major moving averages and the Supertrend indicator, suggesting the potential for further downside toward $50,000.
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