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Experts said ETF outflows and US President Donald Trump’s EU tariff threats have pressured the market, and the Bitcoin might experience a potential drop to $74,000.
ETF outflows and Trump’s EU tariff threats have pressured the cryptocurrency market.
Why Bitcoin Is Falling: The cryptomarket is facing a sell-off pressure as Bitcoin, the world’s largest cryptocurrency, has fallen below the $85,000 mark to trade at $83,740 on Thursday during intra-day, which is over 20 per cent down from its January peak of $109,350. This is the largest sell-off in 2025. Experts said ETF outflows and US President Donald Trump’s EU tariff threats have pressured the market, and Bitcoin (BTC) might experience a potential drop to $74,000.
As of 10:38, the live price of Bitcoin stood at $84,916.18 per (BTC/USD) with a current market cap of $1,683.86B. The 24-hour trading volume is $67.37 billion. Bitcoin declined by 4.61 per cent in the last 24 hours with a circulating supply of 19.83 million, according to binance.com.
Avinash Shekhar, co-founder and CEO of Pi42, said, “The crypto market has entered a bear phase with Bitcoin declining over 20 per cent from its January peak of $109,350 to an intraday low of $83,740. Bitcoin’s decline below $85,000 is the largest sell-off of 2025, with 79,300 BTC sold at a loss in 24 hours, and a $300 billion flash crash in the crypto market signals rising volatility and investor anxiety.”
According to CoinSwitch Market Desk, BTC fell by another 4 per cent within a day as the world’s largest crypto asset has now lost more than 3 per cent three days in a row, first time since August 2024.
Why Is Bitcoin Falling?
US President Donald Trump’s threat to impose 25 per cent tariffs on the European Union has dented investor sentiment, thus causing massive sell-off in Bitcoin.
Avinash Shekhar, co-founder and CEO of Pi42, said, “ETF outflows and Trump’s EU tariff threats have further pressured the market; BTC can experience a potential drop to $74,000.”
According to CoinSwitch Markets Desk, the latest selloff was most likely triggered by Trump announcing his plans to impose 25 per cent tariff on the EU in his first Cabinet meeting. In the stock market also, the S&P500 fell to their session lows as well on Wednesday.
Echoing a similar view, Sonu Jain, chief risk and compliance officer of 9Point Capital, said, “Bitcoin’s drop below $85,000 reflects broader market movements where declines in tech equities, notably on the Nasdaq, underscore a pervasive risk-off sentiment. Trump’s proposed tariffs and ensuing inflation concerns have set the tone across both traditional and digital asset classes.”
Apart from Bitcoin, other cryptocurrencies were also down. Ethereum was trading 6.45 per cent lower to $2,329.31 on Thursday as compared with the previous day. XRP was also down by $4.26 to $2.20.
XRP’s open interest has hit its lowest level in 2025, reflecting broader uncertainty in altcoins also.
However, several altcoins have now started to show strength many like AI16Z, APT now printing three consecutive green daily candles, a rate feat with BTC falling at the same time, according to CoinSwitch Markets Desk.
“On the institutional side, Bitcoin ETFs shattered another record as we saw a net outflow of close to 930 million dollars, the highest ever since the BTC ETFs started trading in January last year. While the price of Bitcoin has really struggled as this pans out, this can be a good thing as well if this money comes back to the altcoin market,” it said.
What’s Next?
Analysts said Bitcoin’s drop is driven by short-term market pressures, including US Bitcoin ETF sell-offs and selling pressure following Trump’s tariff announcement. They added that Bitcoin’s long-term fundamentals remain strong, according to on-chain statistics that suggest long-term holders are continuing to accumulate. The analysts, however, said the coming weeks will test whether Bitcoin and crypto can withstand these pressures or if further declines are on the horizon.
Pi42’s Avinash Shekhar, said, “Institutional selling and macroeconomic instability have shaken confidence, raising questions about whether the crypto market is facing a temporary correction or the start of a deeper downturn. While Bitcoin’s dominance is rising, suggesting some long-term faith remains, the increasing frequency of flash crashes and aggressive liquidations indicates a fragile market. The coming weeks will test whether Bitcoin and crypto can withstand these pressures or if further declines are on the horizon.”
He said BTC might experience a potential drop to $74,000.
Sonu Jain, chief risk and compliance officer of 9Point Capital, said, “While ETF outflows continue to pressure short-term trading, a similar pattern is observable in equity markets. A rebound in Bitcoin will likely depend on a broader return of risk appetite and institutional support across the board, as volatility remains elevated for now.”
Regardless of these hurdles, Bitcoin’s long-term fundamentals remain strong, according to on-chain statistics that suggest long-term holders are continuing to accumulate. Bitcoin’s status as a global asset class is becoming increasingly apparent, despite the reasonable expectation of volatility, he added.
Thangapandi Durai, CEO at Koinpark, said, “Bitcoin’s drop below $85,000 is driven by short-term market pressures, including US Bitcoin ETF sell-offs and selling pressure following Trump’s tariff announcement on Mexico and Canada. As regulatory clarity improves and the upcoming Bitcoin halving approaches, we expect market sentiment to stabilise. Market Corrections are a natural part of crypto’s growth, often creating strategic accumulation opportunities.”