Crypto market recap: Bitcoin drops 3.9% amid tariff fears

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Highlights

Crypto market cap falls to $2.25T as Bitcoin drops below $66K support.
Tariff headlines and soft ETF flows intensify extreme fear conditions.
Institutional accumulation plans persist despite broad market correction.

Bitcoin traded near $65,360, down 3.91% on the day and down 4.22% over the past week, marking another failed attempt to reclaim the $70,000 level. Ethereum dropped to around $1,873, down 5.12% daily, while Solana fell 7.59% and XRP declined 4.49%, underscoring broad-based selling pressure.

The CMC20 index slipped 4.11%, reflecting weakness across large-cap assets. The Altcoin Season Index remained muted at 31, signaling continued Bitcoin-led direction despite deeper drawdowns in select tokens. Average crypto RSI fell to 38, entering oversold territory and highlighting stretched short-term conditions.

Tariff concerns and ETF flows weigh on risk appetite

Renewed macro uncertainty, including trade policy headlines, has pressured global risk assets and spilled into digital markets. Spot Bitcoin ETF flows remain mixed, with recent sessions showing limited conviction from institutional buyers. Analysts note that the combination of weak inflows and macro-driven volatility has reduced dip-buying activity.

Fear & Greed ticked up slightly to 14 but remains firmly in extreme fear, reflecting fragile confidence among traders. Volatility has increased as liquidity thins near key support levels in the mid-$60,000 range. Market participants are closely watching whether Bitcoin can stabilize above $65,000 or risk testing lower structural support zones.

Institutional positioning and compliance narratives remain in focus

Despite the downturn, institutional narratives continue to evolve. Corporate treasury strategies remain active, with prominent Bitcoin advocates signaling continued accumulation plans and long-term conviction in the asset class. Meanwhile, major exchanges are emphasizing strengthened compliance frameworks and regulatory alignment amid ongoing scrutiny. Industry observers say these efforts could help rebuild trust over time, even as short-term price action remains under pressure.

Treasury-focused entities and ETF issuers are also assessing capital deployment strategies in light of heightened volatility. The divergence between long-term institutional engagement and short-term market weakness highlights the current transitional phase in crypto markets. For now, macro drivers and sentiment remain the dominant forces shaping price direction.

Recently we wrote that selling pressure in Bitcoin is increasingly concentrated among large holders, while outflows from stablecoins point to shrinking available capital for purchases, leaving the market more vulnerable to volatility during the current bearish phase.

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