Bitcoin Slumps Below $65K Amid Tariff Jitters and Weakening Institutional Demand

Bitcoin's price has been impacted by growing concerns over tariffs and geopolitical tensions, leading to a decline in its value below $65,000. This comes as US-listed spot ETFs recorded a fifth consecutive week of outflows, indicating weakening institutional demand.

The uncertainty surrounding tariffs and rising geopolitical tensions is weighing on riskier assets such as Bitcoin. The US Supreme Court's ruling against the Trump administration's tariffs has added to the concerns, with President Trump vowing to impose further tariffs using alternative legal frameworks.

Institutional demand for Bitcoin continued to weaken last week, with spot Exchange-Traded Funds (ETFs) recording total outflows of $315.86 million. This trend is similar to what was seen in mid-February to mid-March, where Bitcoin crashed from $100,000 to roughly $80,000.

The decline in institutional demand is also reflected in the decrease in 'dry powder' to buy crypto assets. CryptoQuant reported that a growing amount of USDT, the largest stablecoin, is leaving exchanges, lowering the liquidity ready to be deployed into crypto markets.