Bitcoin price recovery may be at risk as several factors suggest investors are increasingly moving towards established safe-haven assets like precious metals. 

Bitcoin slipped to an intraday low of $62,802 on Tuesday after bulls failed to defend the critical $65,000 support level during the early London session. 

This technical breach occurred as global investors reacted to United States President Donald Trump’s latest use of executive power to impose sweeping tariffs.

The flagship crypto has fallen over 7% in the past week and is now down over 50% from its all-time high of approximately $126,210 recorded in October 2025. 

A correction of this scale highlights the vulnerability of the current market structure, as deteriorating liquidity conditions and persistent macro uncertainty weigh on the likelihood of a sustained rebound.

Bitcoin’s latest slide reflects a combination of macro-driven risk aversion and weakening internal liquidity conditions. 

The escalation in US tariff policy has revived fears of slower global growth and higher inflation, prompting investors to rotate capital away from speculative assets. 

Gold and silver, which are up 19% and 21% year to date, respectively, have absorbed a portion of that flow as traders seek defensive exposure.

Liquidity within the crypto ecosystem has also tightened.

Stablecoin supply has contracted by $5.6 billion since the start of the year, a sign that capital is leaving rather than being redeployed on exchanges. 

On Binance, stablecoin reserves have declined sharply since late 2025, further limiting immediate buying power. 

In parallel, futures open interest has dropped toward $90 billion, reflecting reduced leveraged participation and softer demand for directional bets.

Institutional flows have added to the pressure.

US-listed spot Bitcoin ETFs recorded more than $200 million in net outflows in a single session this week, extending a multi-month trend of withdrawals. 

Without consistent inflows from these vehicles, the market has struggled to absorb selling pressure during periods of volatility.

Regulatory ambiguity continues to weigh heavily on market sentiment.

A significant bottleneck has formed in the Senate Banking Committee, where the stalling of the CLARITY Act has deprived the stablecoin industry of a definitive legal roadmap.

By failing to provide a clear framework for reserves and operational transparency, the current delay forces major market participants to remain on the sidelines.

As Bitcoin lost the $65,000 support level, it shifted the short-term structure in favour of sellers and exposed the $60,000 psychological level as the next major area of interest. 

Momentum indicators remain subdued, and failure to reclaim $65,000 in the upcoming trading sessions could reinforce the current downtrend.

The technical outlook has darkened as the Relative Strength Index hovers near oversold territory without a meaningful bounce, signalling that the path of least resistance remains lower.

High-volume liquidations, totalling over $240 million in long positions on Monday alone, have created a cascading effect that punishes over-leveraged buyers and discourages new entries. 

If the $62,000 floor, which acted as a brief stabilisation point during today's intraday low, is breached on a daily closing basis, the risk of a capitulation event toward $53,000 increases substantially.

This recovery is also physically constrained by the shift in institutional behaviour. 

With investors pulling roughly $4.3 billion out of spot Bitcoin ETFs over the past five weeks, the previous infinite bid from Wall Street has evaporated, replaced by a de-risking strategy that favours the US dollar. 

Until the market can find a catalyst to reverse these massive outflows or resolve the impasse over regulations, any upward price action is likely to be viewed as a dead cat bounce rather than a sustainable trend reversal.

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