The value of Bitcoin dropped strongly after FTX collapsed in 2022 as international market tensions increased impacts on both financial systems and digital currencies worldwide. The main cryptocurrency Bitcoin feels growing uncertainty among investors as world tensions rise combined with market volatility.

Data from CryptoQuant shows that Bitcoin reached a new all-time low point with its drawdown expanding to 27% this year. Though this decline is quick, it stays less severe than other cryptocurrency downtrends. Bitcoin values dropped 83% in 2018 and sank by 73% during the 2022 market crash but these losses remained below its earlier bad years.

Bitcoin Slump Mirrors Broader Risk Asset Retreat

Bitcoin holders experienced substantial market loss despite the smaller percentage decline compared to previous slumps. CryptoQuant data shows 25.8% or 5.12 million BTC out of all circulating Bitcoin is still value-negative as of yesterday. Most crypto investors held coins they had bought before market prices dropped, which resulted in permanent loss on their investment.

Bitcoin Tumbles 27% Amid Geopolitical Trade Fears

Market experts blame the price drop on growing worldwide risks especially from rising U.S.-China tariff conflicts. The market shows high stress levels because traders worry about long-term damaging trade relationship changes. Although Donald Trump announced a 90-day tariff delay, this recent statement failed to boost investors” lasting confidence.

The current economic situation affects risky investment assets including crypto markets, according to market research. Market participants sell their speculative investments in advance of a possible trade war, and cryptocurrencies suffer first.

Bitcoin Tumbles 27% Amid Geopolitical Trade Fears

Digital asset investing took a strong hit everywhere throughout the market. In recent days, Ethereum and major crypto assets experienced double-digit drops along with other cryptocurrencies serving as market indicators of upcoming market shifts.

Despite smaller Bitcoin price declines at this point compared to market bottom experiences investors remain nervous about global political events. Bitcoin recovery expectations remain unclear because over a quarter of existing supply generates losses while macroeconomic problems persist.