The price of Bitcoin fell below $63,000 on Tuesday, continuing a slump that began overnight, as investor confidence wavered amid President Donald Trump’s tariffs and growing concerns about AI developments.
The world’s top cryptocurrency has slipped about 7% this week, hovering around price points not seen since February 6, when it nearly touched $60,000, according to CoinGecko data. The broader crypto market plummeted 4%, dragging the total market capitalization down to $2.19 trillion.
Bitcoin is currently trading around $62,870, down 5% on the day, as BTC holders continue to capitulate.
Selling Pressure Persists Among Bitcoin Holders Amid Recent Downturn
The Short-Term Holder SOPR (STH-SOPR), an indicator showing whether short-term Bitcoin holders are selling at a gain or a loss, fell below 1 following US President Donald Trump’s announcement of a new 15% global tariff on Saturday.
He announced that temporary tariffs on imports from other countries would rise to 15%, up from the 10% rate set on Friday, following the Supreme Court’s decision to strike down his previous tariff strategy.
Currently sitting at 0.95, the metric indicates “renewed short-term loss realization,” according to CryptoQuant analyst XWIN Research Japan in a Quicktake post on Monday. They added:
“The primary sellers are short-term holders reacting to uncertainty, rather than long-term investors distributing structurally.”
Meanwhile, looking at coins sold at a loss, Bitcoin’s seven-day estimated moving average (EMA) for short-term holder net realized losses has eased to $500 million per day, down from a peak of $1.24 billion per day on February 6.
“While the intensity has cooled, the broader regime still signals a market under pressure, with participants in the base formation phase continuing to capitulate,” Glassnode observed.
The 90-day simple moving average (SMA) of Bitcoin’s realized profit/loss ratio has “now fallen below 1, confirming a full transition into an excess loss-realization regime,” added Glassnode.
Crypto Sentiment Plunges To Historic Lows
Alternative.me’s Crypto Fear & Greed Index, which tracks overall market sentiment, has dropped to 5 out of 100 as of press time, signaling one of the most bearish sentiment environments in cryptocurrency history. Since its launch in 2018, the index has only hit such low levels three times: in August 2019, June 2022, and earlier this month.
In the short term, macroeconomic news— especially on tariffs and renewed geopolitical tensions—is keeping a risk-off mood across digital assets.
The $60,000 mark remains a critical support level that bulls are monitoring closely. If it fails to hold, Bitcoin could potentially slide further to $50,000 or even lower.
