The cryptocurrency markets experienced sharp fluctuations last week, with Bitcoin leading the way, capturing $1.55 billion of the $2.17 billion in total digital investment fund inflows—more than 71% of the weekly total—according to a CoinShares report. Ether, XRP, and Solana attracted smaller inflows of $496 million, $70 million, and $46 million, respectively, while some smaller cryptocurrencies like Sui and Hedera saw limited inflows.
In a dramatic turn of events, Bitcoin prices plummeted by approximately $3,500 in just a few hours, settling at $92,580, after the European Union threatened to invoke its anti-coercive tool, the trade gun, in response to former US President Trump's announcement of tariffs on several European countries. This decline resulted in the liquidation of over $860 million in long positions within a 24-hour period.
On the regulatory front, market analyst Michael van de Poppe described the halt of the CLARITY Act as positive news for the industry, noting that approval of the law in its current form would have caused significant damage to digital markets, with discussions continuing among stakeholders to amend the law.
