Bitcoin's Plunge Triggers Concerns About Cycle Integrity

Bitcoin's price has been on a downward trend, dropping to $63,822, which is roughly 50% below its all-time high of $126,080. This decline has sparked concerns about the structural foundation of the cryptocurrency market.

However, experts from BTC Markets and LVRG Research disagree with this assessment, attributing the price drop to compounding macro shocks and leverage rather than a breakdown in the cycle's fundamentals. They point to President Trump's tariff decision, the Federal Reserve's inaction, and sticky inflation as key contributing factors.

According to Rachael Lucas from BTC Markets, Bitcoin continues to trade as a risk asset, with capital rotating towards traditional safe havens during periods of macro fear. The experts also note that digital asset investment products have experienced five consecutive weeks of outflows, with over $4 billion erased from the sector.