Bitcoin turns bearish as its weekend gains completely evaporate. Negative momentum was briefly halted thanks to Trump’s Crypto Reserve announcement, but the underlying macroeconomic problems remain.

Trump’s tariffs against its closest trading partners are still set to go through, and the Federal Reserve is predicting the worst decline in US GDP since the pandemic began. A broader recession will also hurt the crypto industry.

Bitcoin Drops 10% As Recession Seems Near

The price of Bitcoin has shown extreme volatility over the past few days. Last week, the Crypto Fear and Greed Index hit its lowest level since 2022, and Bitcoin looked very bearish due to several key factors.

Yesterday, Trump announced a crypto reserve that caused token prices to pump. However, that forward momentum has completely vanished today.

There are a few reasons that Bitcoin is looking so bearish right now. Essentially, Trump’s announcement may have only slapped a bandage on a very serious wound.

Last week, Bitcoin ETFs had their worst week ever, with $2.7 billion in outflows, as the Federal Reserve Bank of Atlanta predicted a 1.5% GDP decrease. Today, it has become even more pessimistic.

The Fed is now predicting that the US GDP will shrink 2.8% by the end of Q1 2025. From an economic perspective, this is apocalyptic compared to its predictions four weeks ago, which showed 3.9% growth.

Macroeconomic Factors Don’t Look Good for Crypto

The US economy hasn’t shrunk that much since the early days of the Covid-19 pandemic five years ago. These macroeconomic factors are a significant signal that Bitcoin might turn bearish in the short term. In fact, market liquidations have hit nearly $800 million today.

Another important factor contributing to Bitcoin’s volatility is President Trump’s proposed tariffs. Some analysts have theorized that they aren’t the main cause, and that’s probably true.

However, the crypto market crashed when Trump recently announced 25% tariffs on the EU, joining ones on Canada, Mexico, and China.

“Trump: no room left for deal on tariffs on Mexico, Canada. [He] reiterates plan to double China tariff from 10% to 20%,” claimed Walter Bloomberg via social media.

In other words, macroeconomic factors are largely driving market sentiment in the crypto industry. Since the Bitcoin ETFs were approved, crypto has been well-integrated into traditional finance.

If the US economy enters a recession, however, the downsides of that integration will fully reveal themselves.

The crypto market continues to face selling pressure as digital asset investment products recorded their largest weekly outflows.

Sentiment remains sour, with Bitcoin (BTC) barely holding above the psychological level of $90,000 despite President Donald Trump’s crypto reserve policy.

Crypto Outflows See New Records

Over the past week, crypto outflows reached a staggering $2.9 billion, bringing the three-week total to $3.8 billion. This marks the third consecutive week of capital exiting the crypto sector, and it is a stark contrast to the preceding 19-week inflow streak, which saw $29 billion pour into the market.

The latest CoinShares report ascribes the negative flows to weakening sentiment across the crypto market. It cites factors such as the recent Bybit hack among key factors contributing to the mounting outflows. Others include a more hawkish stance from the Federal Reserve and broader macroeconomic concerns.

“We believe several factors contributed to this trend, including the recent Bybit hack, a more hawkish Federal Reserve, and the preceding 19-week inflow streak totaling US$29bn. These elements likely led to a mix of profit-taking and weakened sentiment toward the asset class,” read an excerpt in the report.

As BeInCrypto reported, the hack, which resulted in millions of dollars stolen, has shaken investor confidence. This reinforces fears over security vulnerabilities in the crypto space. Additionally, the Federal Reserve’s latest comments signaled a cautious outlook on inflation and the US GDP, leading to broader market uncertainty and a decline in risk appetite.

Against this backdrop, CoinShares’ researcher James Butterfill highlights Bitcoin as the hardest hit by the bearish sentiment, experiencing outflows of $2.59 billion last week. Ethereum also suffered, recording its highest weekly outflows at $300 million. Other major altcoins followed suit, with Solana experiencing outflows of $7.4 million.

Nevertheless, short Bitcoin positions saw minor inflows totaling $2.3 million, suggesting some investors are positioning themselves for further downside.

Despite the overall negative sentiment, some digital assets saw inflows. Sui emerged as the best performer, attracting $15.5 million, while XRP followed with $5 million in inflows. These gains suggest that while the broader market is under pressure, certain projects continue to garner investor interest.

For XRP, the sentiment remains bullish, steered by increasing anticipation of a US SEC (Securities and Exchange Commission) decision on an XRP ETF. The deadline for the SEC to approve or reject certain ETF applications has begun. Investors remain hopeful that XRP will gain regulatory clarity. Including XRP in Trump’s crypto reserve in the US could enhance this sentiment.

Notwithstanding, the latest round of outflows follows a concerning trend developed over the past few months. The previous week saw crypto outflows of $508 million, further exacerbating investor fears. Before that, the Federal Reserve’s hawkish rhetoric and concerning Consumer Price Index (CPI) data had already triggered the first major crypto outflows of 2025, with $415 million exiting the market.

This series led some analysts to point to macroeconomic factors as the primary driver of the selloff, with investor sentiment still showing fear.

However, others argue that external policies like President Donald Trump’s tariffs have contributed to the uncertain market environment, stoking inflation fears and making risk assets like crypto less attractive.

A competing perspective suggests that structural shifts, including cash and carry trading strategies, may contribute to Bitcoin’s recent volatility.

As of this writing, Bitcoin was trading for $93,095, up by over 8% since Monday’s session opened.

Japan’s Metaplanet has gone on yet another Bitcoin buying spree. Earlier today, it snagged an extra 156 $BTC worth around $13.4M, bringing its stash to a sizable 2,391 $BTC (approximately $219.5M). 

It’s reportedly thinking about listing its $BTC shares in the US for more financial opportunities. This comes as no surprise, considering that its $BTC investments have surged by 13% since buying the crypto leader in April last year.

$BTC Jumps 7.11% Amid Metaplanet’s Bitcoin Buying Spree

MetaPlanet’s new holdings come weeks after the company’s CEO, Simon Gerovich, met with bigwigs from the New York Stock Exchange and Nasdaq to discuss its platforms and functions —perhaps its $BTC holdings are what bring its visions to reality. 

Moreover, the recent purchase contributed to $BTC jumping by 7.11% since yesterday, which represents a great time to capitalize on the crypto king’s success. 

A new crypto presale project called BTC Bull Token ($BTCBULL) introduces an intriguing new way to benefit from $BTC’s success without having to directly purchase the coin, which is currently worth a hefty $92K. 

Win Free $BTC Every Time It Breaks a New Record

$BTCBULL is one of the best crypto presales of 2025 because it provides a fun and engaging way to contribute and benefit from $BTC’s success. 

It’s the first ERC-20 token that lets you win $BTC directly through airdrops. But here’s the hitch: To win free coins, you have to buy $BTCBULL through Best Wallet and wait for the crypto leader to reach a new milestone ($15OK, $200K, $250K, and so on). Then, enjoy the freebie drops.

A hefty $BTCBULL airdrop also awaits the most dedicated community members when $BTC hits $250K. 

When taking into account that major companies like Metaplanet and Microstrategy keep enhancing their Bitcoin portfolios, and that $BTC has nearly doubled since last year, these milestones aren’t out of reach.

What’s more, every time $BTC climbs an additional $25K, a portion of $BTCBULL will be burned (removed from circulation). Scarcer tokens are usually more desirable, so the token should witness an upswing. 

The project also sets aside 10% of its total token supply to staking so that you can stake $BTCBULL for additional passive income, currently at a chunky 137% APY. 

Considering that both $BTC and $BTCBULL can effortlessly be captured for greater returns, the BTC BULL crypto presale is an attractive investment opportunity. 

$BTCBULL – A Low-Cap Entry Point Into $BTC

As Metaplanet goes on yet another Bitcoin buying spree and considers listing its $BTC shares in America, it highlights its commitment to the crypto leader’s success. 

Still, at $92K, $BTC is not cheap. For casual investors wanting to the snag the coin, Bitcoin Bull offers a great way to earn a slice of the crypto maestro and $BTCBULL without spending a dime 

All you need to do is buy $BTCBULL on presale for just $0.00239. Its price will increase tomorrow, so now’s a great time to join the crypto presale. 

However, it’s essential to know this isn’t investment advice. You must always do your research and never spend more than you’d be sad to lose.