Bitcoin drops as much as 8.5%, the biggest intraday decline since August

Bitcoin dropped as much as 8.5 per cent, the largest cryptocurrency by market value was down 7.6 per cent to US$86,805

Bitcoin dropped as much as 8.5 per cent, the biggest intraday decline since August, amid broader market turbulence and uncertainty over new US tariffs.

The largest cryptocurrency by market value was down 7.6 per cent to US$86,805 by 11.20am in New York on Tuesday. Other cryptocurrencies also fell, with ether, XRP and solana mostly down more for the session. An index tracking top digital tokens was on pace for its largest four-day drop since early August.

“The fall in bitcoin prices is likely related to broader macro uncertainty that has hit most financial markets in the last couple of days and is linked to the various tariffs being announced by President Trump,” said Adrian Przelozny, CEO of crypto exchange Independent Reserve.

Tumbling crypto prices mirror a broader retreat from risky assets that gained momentum late last week when a string of disappointing economic reports pushed theNasdaq 100to what is now its worst four-day drop since September. In turn, money has flowed into bond havens, pushing the 10-year Treasury yield down for five straight sessions.

Bitcoin has lost about half its value from a record high reached in November. The cryptocurrency has struggled to regain momentum after a brief rally earlier this year.

At the same time, the crypto derivatives market has seen heightened activity in recent months, with open interest in bitcoin futures and options contracts on Deribner reaching a record high in March.

According to a recent report by Arcane Research, the volume of bitcoin futures trading on major exchanges has also surged in 2023, further indicating increased activity and interest in the cryptocurrency market.