Bitcoin Faces 27% Drawdown Amid Trade Tensions – Echoes of FTX Collapse?

Bitcoin has plunged 27% from its all-time high, marking its steepest decline since the FTX collapse. The drop coincides with escalating US-China tariff disputes, though a temporary 90-day tariff pause offers slight relief. While the current drawdown pales in comparison to historic bear markets (83% in 2018, 73% in 2022), it underscores lingering market fragility.

Bitcoin Drawdown Widens to 27% Amid Trade Tensions

Bitcoin has experienced its largest drop since the FTX collapse, with a 27% drawdown from its all-time high. The decline comes amidst escalating global tariff disputes between the US and China. While a recent 90-day pause on reciprocal tariffs by Donald Trump has provided some relief, the market pressure remains. Compared to past bear markets, such as the 83% drop in 2018 and the 73% decline in 2022, this figure is modest but still significantly impacts holders. CryptoQuant data reveals that 25.8% of Bitcoin’s circulating supply has been affected.

SBF Transferred to Notoriously Violent California Prison

Sam Bankman-Fried, the fallen founder of FTX exchange, has been moved to a medium security facility in Victorville, California, known for its brutality. Bankman-Fried was sentenced to 25 years in November 2023 for defrauding users in one of the most significant U.S. financial crimes. He spent two weeks at an Oklahoma Transfer Center and over 18 months at a detention center in Brooklyn, NY before the transfer.