Bitcoin is struggling to recover after a significant market decline that erased over $600 billion in digital-asset value, raising doubts about its status as a safe-haven asset.
Bitcoin is grappling to regain momentum following a substantial market downturn that resulted in the loss of over $600 billion in digital-asset value. The cryptocurrency’s price has fallen to $106,322, reflecting a 4% decline from its previous close. This downturn has intensified skepticism regarding Bitcoin’s role as a “safe-haven” asset.
The recent sell-off was triggered by escalating trade tensions between the United States and China, culminating in a 100% tariff on Chinese imports announced by President Trump. This unexpected move ignited panic selling across global markets, including cryptocurrencies. In the week leading up to October 12, Bitcoin’s price plummeted by as much as 6.3%, marking its most significant decline since early March.
Despite efforts by major cryptocurrency platforms such as Kraken, Circle, BitGo, and Ripple to enhance their involvement in regulated finance, the market has struggled to achieve a sustained recovery. Analysts suggest that the crash has purged excess leverage from the market, yet Bitcoin faces considerable challenges in reclaiming its previous highs.
Currently, Bitcoin’s price remains below its all-time high of $126,251, which was reached on October 6, 2025. The market’s cautious sentiment continues, with investors seeking stability amid ongoing geopolitical uncertainties. The combination of regulatory pressures and market volatility has left many wondering about the future trajectory of Bitcoin and its viability as a long-term investment.
As the cryptocurrency landscape evolves, the ability of Bitcoin to navigate these turbulent waters will be critical. Investors are closely monitoring developments, particularly in relation to regulatory changes and market dynamics, which could significantly impact Bitcoin’s recovery prospects.
In summary, while Bitcoin has faced a significant setback, the ongoing efforts by key players in the cryptocurrency space may provide a foundation for future growth. However, the path to recovery remains uncertain as market conditions continue to fluctuate.
Source: Original article