Bitcoin Declines 22% This Month Amid Tariff Concerns and Inflation Fears

Bitcoin is experiencing a significant downturn, with a 22% decline this month, marking its worst performance in three years. Key factors include:

President Trump's tariffs on major trading partners raising inflation concerns.
A reduced likelihood of interest-rate cuts impacting investor sentiment.
Decreased appetite for risky investments.

This week's BTC drop of nearly 18% is the steepest since November 2022. The average purchase price for investors since January stands at $97,880, while BTC recently fell below $80,000, placing buyers approximately 18% underwater.

Historically, unrealized losses occur early in the year, as prices may dip before recovering. On-chain data shows realized losses have escalated significantly, with around $1 billion in losses recorded daily over the past three days. This is the highest level since August when BTC dropped to $49,000.

Overall, the crypto market cap has decreased by $1.1 trillion, now totaling $2.59 trillion.