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The Bitcoin, Dogecoin, and XRP prices have crashed this week, recording massive declines, led by BTC, which dropped to new 2026 lows. This decline has been mainly due to macro fundamentals, including the Trump tariffs, which are causing market uncertainty. 

Why The Bitcoin, Dogecoin, And XRP Prices Are Crashing

The Bitcoin, Dogecoin, and XRP prices are down this week and are now suffering year-to-date (YTD) losses, according to CoinMarketCap. BTC dropped below $82,000 yesterday, marking a new yearly low for the leading crypto. One reason for this decline remains the Trump tariffs, which have heightened market uncertainty. 

Earlier this week, the U.S. president announced in a Truth Social post that he was increasing tariffs on South Korea from 15% to 25%. This came just days after he threatened to increase tariffs on Canada to 100% if they made a trade deal with China. It is worth noting that JPMorgan analysts, in a recent note, explained that the Trump tariffs, especially on China, are affecting dollar liquidity, which they indicated is already contributing to the decline in the prices of Bitcoin, Dogecoin, and XRP. 

These analysts explained that China has had to adapt to the Trump tariff pressure and, in doing so, is adversely affecting the dollar liquidity cycle. Notably, China has been selling off U.S. treasuries and buying more gold. Amid this development, the U.S. dollar has weakened, which will typically be bullish for BTC. 

However, these analysts stated that investors currently treat Bitcoin as a liquidity-sensitive risk asset rather than as a hedge against the USD weakness. Gold has instead taken the spotlight in this regard, reaching new highs as investors move to it as a safe haven. Notably, the Bitcoin, Dogecoin, and XRP prices also dropped yesterday as gold crashed over 6% amid a sudden sell-off. 

Meanwhile, rising tensions between the U.S. and Iran are also contributing to the decline in the Bitcoin, Dogecoin, and XRP prices. Earlier this week, Trump threatened strikes on Iran that would be far worse than the strikes last year. According to a Reuters report, the U.S. president is already weighing options against Iran, which could include targeted strikes on security forces and leaders. Iran has also vowed to respond like never before if pushed by the U.S.

A Hawkish Fed Is Also Sparking Bearish Sentiment 

The Fed also appears to be hawkish at the moment, which has sparked a bearish sentiment and contributed to the decline in Bitcoin, Dogecoin, and XRP prices. The Fed held interest rates at the FOMC meeting earlier this week, while signaling that they are in no hurry to make more rate cuts. This could mark the beginning of a rate-pause cycle, which could further constrain liquidity. 

Concerns about the Fed’s hawkish pivot have also worsened following reports that former Fed Governor Kevin Warsh is likely to become the next Fed Chair. Warsh is regarded as one of the more hawkish candidates for Fed chair, as he has advocated for a smaller Federal Reserve balance sheet. It also remains unclear where he stands on rate cuts, unlike the other candidates, who have declared support for lower interest rates.

Metaplanet, the Tokyo-listed firm that has been shifting into a Bitcoin treasury role, moved this week to shore up its balance sheet and add more BTC to its vault.

The company cleared a plan to raise up to about $137 million through a mix of new shares and stock acquisition rights aimed at buying Bitcoin, supporting its income business tied to BTC, and cutting some debt.

Reports say the fundraising will be done mainly with select overseas investors rather than a public share sale.

Metaplanet’s Capital Mix

According to filings, Metaplanet plans to issue 24.53 million new common shares at 499 yen apiece, which would bring in roughly 12.24 billion yen immediately.

In addition, the company will grant stock acquisition rights that could raise more money if exercised, taking the total potential haul to about 21 billion yen (roughly $137 million).

Reports note the share price for the offering sits a little above recent trading levels, but investors still reacted nervously.

A Push To Buy More Bitcoin

Metaplanet has been piling up BTC for a while. As of late December 2025, the company held about 35,102 Bitcoin, based on public updates.

The new funds are meant to let it keep buying while also giving breathing room for its Bitcoin income operations — those are businesses that try to earn fees or returns from BTC activity rather than from hotels or other old lines of business. Some of the cash will also go toward paying down borrowings tied to its recent credit facility.

Market Response And Risks

Stock traders pushed Metaplanet shares lower after the news, with the price slipping several percent during the session on concerns over dilution and the short-term impact of the issuance.

The company has faced sharp swings before: it booked a large non-cash impairment late in 2025 after Bitcoin’s fall, a hit that trimmed reported equity by a big sum and highlighted how tied the firm is to BTC prices. That accounting loss does not mean the coins were sold, but it did spook some investors.

Why This Matters

Reports say Metaplanet is trying to balance growth of its Bitcoin stash with steps to make its finances less fragile. The move shows a bet that holding more BTC and building services around it can pay off, but the plan also exposes shareholders to more swings in crypto markets.

For some investors, the chance to back a focused Bitcoin treasury is attractive. For others, the same bet looks risky, especially when big paper losses can show up on financial statements even while the firm holds the same coins.

Featured image from Unsplash, chart from TradingView

In a sudden move, the Bitcoin price has dropped sharply as volatility in the broader cryptocurrency market experienced a sharp increase, causing the flagship asset to retest the $83,000 level. Amid this waning market performance, a key trend is currently in the spotlight and making waves, which is the steady reduction in BTC Lost Coin supply.

Price Declines, And Lost Bitcoins Are Dropping

While the price of Bitcoin struggles with heightened volatility, the market dynamics are starting to see a critical shift in trend and investors’ activity. Several key metrics are now displaying a cautious signal about the market again, and one of those is the Bitcoin Lost Coins metric.

In the research, Joao Wedson, the founder of on-chain data platform Alphractal, disclosed that the BTC lost coin supply is declining, hinting at a subtle but meaningful shift in the network’s long-term dynamics. According to the market expert, this decline is not a coincidence.

This development suggests that many coins that were previously thought to be permanently unreachable are being reclassified as active, lowering the expected proportion of Bitcoin that cannot be recovered. It also essentially increases the usable quantity of BTC, which has an impact on the scarcity assumptions that underlie long-term pricing models.

Wedson highlighted that several analysts attributed the decline solely to the Exchange-Traded Funds (ETFs), but the story is beyond the narrative. While the ETF was the structural catalyst, the real trigger was breaking the long-awaited $100,000 price mark. When Bitcoin hits the price range, all economic incentives are altered. 

BTC that had been sitting idle for years in exchange cold wallets have started to move due to custody restructuring, address migrations, and UTXO consolidation. At the same time, OG whales and long-term holders have also moved into distribution mode, as they are actively selling into the market. This is considered a classic behavior during redistribution phases, not market collapse.

The developments coincide with individuals and companies making serious efforts to recover coins once believed to be lost in old backups, forgotten hard drives, abandoned multisigs, legal custodianships, estates, and inheritances. In simple terms, BTC that were economically dead before came back to life.

After his analysis, Wedson believes that the core point is simple. BTC ETFs did not create any new coins, and the $100,000 level did not either. Instead, all they did was reawaken an old supply that had been dormant. However, the Lost Coins are declining due to BTC becoming too valuable to ignore.

What Are BTC Investors Doing In The Market

Despite the ongoing volatile landscape, CW, a market expert, revealed that Bitcoin’s large holders are steadily purchasing low-leveraged long positions. These investors are building long positions rather than chasing aggressive bets, suggesting increasing confidence in the absence of excessive risk.

Related Reading: Bitcoin Big Money Bet: Whales Are Ramping Up Long Positions As Market Sets Up

On the other hand, the high-leveraged long positions of all retail investors have been liquidated. It is worth noting that the majority of high-leverage investors lost their money before the rally even started.