Bitcoin's Seven-Month Struggle: From June Tariff Threats to Sub-$90K Territory

Bitcoin has navigated a turbulent landscape over the past seven months, most recently testing the $88,730 level as a confluence of macroeconomic headwinds and shifting corporate asset strategies continue to pressure markets. The digital asset has faced mounting challenges since the initial policy uncertainty emerged in mid-2025, with current price weakness reflecting both systemic market pressures and changing sentiment around cryptocurrency adoption by major institutions.

The cryptocurrency experienced a sharp 3-4% retracement over recent trading sessions, dipping toward $87,000 before recovering slightly to around $88,730. This latest decline follows a broader downtrend, with Bitcoin trading approximately 4% lower on a seven-day basis. The 24-hour trading volume has settled at $951.43 million, while the network’s market capitalization stands at roughly $1.77 trillion, with 19.98 million BTC circulating out of the capped 21 million total supply.

Policy Uncertainty and Broader Market Volatility

The recent price pressure correlates with renewed macroeconomic uncertainty stemming from escalating trade tensions. U.S. President Donald Trump announced sweeping tariff proposals affecting major European economies—Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland—with an initial 10% tariff rising to 25% by the first half of 2026 if negotiations fail to produce agreements.

The trading backdrop has grown more complex with the U.S. Supreme Court expected to rule on whether Trump possesses the constitutional authority to impose such broad tariffs under emergency powers, specifically invoking the International Emergency Economic Powers Act (IEEPA). A potential decision against the administration could force government refunds exceeding $100 billion in previously collected tariffs, creating budget uncertainty and disrupting defense spending assumptions. This judicial overhang has contributed to broader risk-off sentiment across cryptocurrency and equity markets.

Meanwhile, gold has surged to fresh all-time highs near $4,750, demonstrating the pronounced flight toward traditional safe-haven assets as institutional investors de-risk their exposure. Notably, this move has not benefited Bitcoin proportionally, suggesting the digital asset remains vulnerable to perceived short-term uncertainty despite its historical status as a monetary hedge.

Corporate Bitcoin Strategies Create Market Crosscurrents

On-chain analysis reveals a notable divergence in how major corporate Bitcoin holders are positioning themselves. On-chain data indicates GameStop transferred 2,396 BTC to Coinbase Prime during January, representing approximately 51% of the company’s holdings that were accumulated in mid-2025 when the retail trader-focused company purchased 4,710 BTC at an average price near $106,000 per coin. These transfers to brokerage custody solutions typically signal potential selling intentions, though GameStop has not made an official announcement regarding liquidation.

The retail meme-stock company’s cautious approach stands in sharp contrast to Microstrategy’s aggressive accumulation. The Nasdaq-listed corporate treasury operator—the world’s largest publicly traded Bitcoin holder—disclosed purchasing 22,305 BTC last week for approximately $2.13 billion, calculated at an average entry price of $95,284 per bitcoin. Microstrategy’s cumulative Bitcoin position has expanded to 709,715 BTC acquired at a blended average price of $75,979, representing over 3% of Bitcoin’s total circulating supply.

Despite the continued institutional buying from Microstrategy, the firm’s equity shares declined approximately 7% during recent trading as Bitcoin tested lower price levels, highlighting the heightened correlation between cryptocurrency valuations and equities of companies with significant digital asset exposure. This sensitivity underscores how institutional strategies can amplify price swings during periods of broader market uncertainty.

Market Structure and the Path Forward

The divergence between GameStop’s apparent de-risking and Microstrategy’s continued accumulation encapsulates the current market dynamic—institutional participants are recalibrating their exposure based on differing risk assessments. GameStop’s positioning suggests concerns about near-term price weakness, while Microstrategy’s conviction buying implies confidence in longer-term Bitcoin value propositions despite intermediate volatility.

At current levels near $88,730, Bitcoin continues to test key support structures as investors weigh competing narratives around tariff policies, emergency powers rulings, and corporate capital allocation trends. The convergence of policy uncertainty and shifting institutional sentiment will likely remain central to price discovery as markets navigate the months ahead.