Pro News Flash: Bitcoin Bleeds as Confidence Cracks

🟢 Bitcoin is sliding fast and ignoring good news while reacting aggressively to bad headlines. The world’s largest cryptocurrency is heading for its worst month since June 2022, when the collapse of Terraform Labs and its TerraUSD stablecoin triggered chaos across the market.

📉 From record highs in October, Bitcoin has now lost roughly half its value. The recent drop was accelerated after the US Supreme Court declared Donald Trump’s tariffs illegal, strengthening the dollar and dragging US equities lower, which pushed Bitcoin back toward its February lows.

💸 Capital is leaving the space. Bitcoin focused ETFs have seen $3.8 billion in outflows over five consecutive weeks, marking the longest losing streak since early last year.

🥇 Some investors are questioning Bitcoin’s role as a macro hedge. As gold regains attention and stablecoins gain legislative support in payment systems, Bitcoin appears to be fading from the spotlight.

🏛️ Political backing is also under scrutiny. While support from Donald Trump and institutional players was once seen as bullish, it now raises concerns about decentralisation. If Bitcoin depends on political narratives, can it truly hedge political risk?

📊 Institutional dynamics are shifting. Hedge funds reduced their ETF participation from 31% in Q4 2024 to 24% a year later, and declining volatility has driven speculators away.

📍 With confidence fading and portfolio allocations shrinking, Bitcoin risks a move toward $50,000, with downside pressure still building.

📅 The key question now: Is this just another shakeout, or is Bitcoin entering a deeper structural reset?

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