Bitcoin News Today: Investors Flee Crypto Amid Tariffs, AI Fears, and SEC Scrutiny

Bitcoin and Ethereum Prices Dip Amid Market Pullback

Bitcoin’s price has fallen below $113,000, marking a significant drop from its recent all-time high of $124,176 on Thursday. This decline has surprised traders and led to the liquidation of $113 million in leveraged long positions. Analysts attribute the drop to concerns over the U.S. economy and stock markets, alongside heightened volatility in the cryptocurrency sector. The sharp correction raises questions about whether the bull market for Bitcoin remains intact as macroeconomic uncertainties continue to mount.

The drop has been exacerbated by growing fears over U.S. trade policies, particularly the imposition of new 50% import tariffs on 407 additional aluminum- and steel-containing products. This move has triggered worries about potential supply chain disruptions and inflationary pressures. Additionally, the Nasdaq 100 dropped 1.5% after a report from MIT NANDA indicated that 95% of companies had failed to see significant revenue growth from their AI pilot programs. These economic signals have heightened risk aversion, pushing investors toward safer assets and away from high-risk markets like crypto.

Investors have also been reacting to the U.S. Securities and Exchange Commission’s (SEC) alleged investigation into Alt5 Sigma, a firm recently partnered with World Liberty Financial, a company linked to Donald Trump. The investigation into potential fraud and stock manipulation has added to the uncertainty surrounding related assets. World Liberty, which raised $550 million through public token sales, has been under scrutiny for its involvement in DeFi and stablecoin platforms. As a result, demand for downside protection has increased in Bitcoin derivatives markets, with the BTC options skew metric turning bearish.

Bitcoin’s 30-day options delta skew (put-call) has surged to 12%, the highest level in over four months. This indicator, which typically oscillates between -6% and +6% under neutral conditions, is now a signal of extreme fear among traders. Such levels are historically rare and suggest heightened investor caution. A similar spike to 13% occurred on April 7 when Bitcoin dropped below $74,500 for the first time in five months. In that case, the market rebounded strongly over the next month. Analysts suggest that while the current price dip is concerning, it does not necessarily signal the end of Bitcoin’s bullish trend.

Ethereum has also experienced a decline alongside Bitcoin, reflecting broader market sentiment. However, some analysts remain optimistic about Ethereum’s long-term potential. Bernstein, a brokerage firm, has maintained its bullish stance on Bitcoin, projecting a price of $200,000 in this cycle. The firm also highlights Ethereum and Solana as altcoins poised to lead the next phase of adoption in decentralized applications. As institutional interest in crypto infrastructure grows, platforms like Robinhood, Coinbase, and Circle are seen as beneficiaries of mainstream adoption and regulatory clarity.

Despite the current pullback, market observers emphasize that Bitcoin and Ethereum are still viewed as foundational assets in the digital economy. While short-term volatility is expected, the underlying fundamentals—such as increasing institutional participation and regulatory developments—remain supportive of long-term growth. The challenge for traders now is to navigate the uncertainty without losing sight of the broader bullish narrative that has defined much of the year.

Source: [1] Why is Bitcoin crashing and will $112K be the final bottom? (https://cointelegraph.com/news/why-is-bitcoin-crashing-and-will-112k-be-the-final-bottom) [2] Bitcoin To $200,000 Is Bernstein's 'Highest Conviction,' But ... (https://finance.yahoo.com/news/bitcoin-200-000-bernsteins-highest-213120981.html) [3] Bitcoin sell pressure 'palpable' as BTC bid support stacks ... (https://cointelegraph.com/news/bitcoin-sell-pressure-palpable-btc-bid-support-stacks-at-105k)