Bitcoin Dips After Tariff News, But Institutional Buyers Step In

The cryptocurrency market faced a sharp decline after President Donald Trump announced new tariffs, triggering a sell-off that wiped out around $509 million in value.

Bitcoin took a hit, plunging to $82,352 as traders struggled to maintain the $83,000 support level. A brief bounce to $88,000 offered a glimmer of hope before the price slipped again, reflecting the uncertainty hanging over the market.

Other cryptocurrencies followed suit, with Ethereum dropping more than 6% and Solana declining by 6.6%. Although Bitcoin showed signs of stabilizing around $82,000, the ongoing selling pressure kept investors on edge. While some panicked, others took the downturn as a chance to make strategic moves.

Institutional players seemed largely unfazed by the turbulence. Bitcoin ETFs, which initially showed sluggish inflows, made a surprising comeback as big investors took advantage of the dip. Notably, Fidelity’s FBTC and Ark Invest’s ARK saw significant inflows of $119 million and $130 million, respectively, while BlackRock’s IBIT faced $116 million in outflows. This mixed response highlights a divide between cautious and bullish perspectives among institutional investors.

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Despite the market’s volatility, large-scale buyers continued accumulating Bitcoin. Prominent companies, including those led by Michael Saylor and Japan’s Metaplanet, have been steadily boosting their holdings, signaling long-term confidence in the asset. Recent data shows that eight companies collectively acquired over 26,000 BTC last week alone, reinforcing Bitcoin’s growing appeal as a strategic investment.

The price swings did not dampen trading activity. On the contrary, Bitcoin’s trading volume surged by 85%, reaching $54 billion, as market participants took advantage of the fluctuations. Currently, Bitcoin is priced at around $83,394, maintaining a market cap of $1.65 trillion.

Analysts are now focusing on whether Bitcoin can break through resistance at $86,900 or if it might face further declines. The situation remains fluid, but the steady accumulation by major investors suggests they view Bitcoin’s long-term prospects positively despite short-term challenges.

Alexander Stefanov