Bitcoin Plunges to $86K Amid ETF Outflows and U.S. Tariff Fears

Bitcoin extended losses for the fourth consecutive session, plunging 3.6% to $88,706.9 by early Wednesday, after briefly dipping to $86,000. The world’s largest cryptocurrency has shed about $8,000 over the past week, rattled by a $1.5 billion hack on ByBit and broader market volatility.

Investor sentiment soured as U.S. President Donald Trump hinted at new tariffs on copper imports and confirmed a 25% duty on Canada and Mexico starting next week. Fears of a slowing U.S. economy, fueled by weak consumer sentiment data, further pressured risk-driven assets, including cryptocurrencies.

Adding to the bearish outlook, Bitcoin ETFs recorded near-record outflows, with investors pulling $1.01 billion in a single day. Major funds, including Fidelity Wise Origin Bitcoin Fund ($344.7 million outflow) and BlackRock’s iShares Bitcoin Trust ETF ($164.4 million outflow), saw heavy profit-taking, wiping out Bitcoin's post-election gains.

Despite a $2 billion Bitcoin purchase by MicroStrategy, the market remained under pressure. Altcoins showed signs of recovery, with Ether rising 0.5% to $2,492.69 and XRP climbing 1.9% to $2.2923. Solana, Cardano, and Polygon posted gains between 2% and 5%, while memecoins remained volatile—Dogecoin edged up 0.9%, but $TRUMP fell 0.5% to record lows.

As Bitcoin struggles near multi-month lows, investors remain cautious amid macroeconomic uncertainties and shifting risk sentiment in global markets.