Crypto bloodbath: Bitcoin tanks amid US tariff shock, geopolitical tensions

Bitcoin dropped more than 3 per cent on Monday, falling below the $65,000 mark, as investors reacted to renewed uncertainty over US trade policy and geopolitical risks.

The world’s largest cryptocurrency had earlier dipped nearly 5 per cent to around $64,300, its lowest level since February 6, before partially recovering. Ether, the second-largest token, fell 3.9 per cent to $1,867.3.

The declines followed US President Donald Trump’s announcement that he would raise global tariffs from 10 per cent to 15 per cent, stirring fresh concerns about the economic outlook. The news came despite US officials assuring trading partners that previously negotiated agreements remain in place after a Supreme Court ruling limited Trump’s emergency authority on tariffs.

Asian equities, in contrast, rose in early trading, highlighting a divergence between regional stock markets and the crypto sector. US stock futures also weakened, with S&P 500 and Nasdaq 100 contracts falling 0.8 per cent and 1 per cent, respectively, Bloomberg reproted.

“The crypto market continues to be fragile, with participants watching the $60,000 support level closely,” said Caroline Mauron, co-founder of Orbit Markets. She added that macroeconomic and geopolitical uncertainty, including US military activity near Iran, could trigger further downward pressure.

Bitcoin has been on a prolonged sell-off since reaching a record high above $125,000 last October, shortly before the massive correction that has wiped out over $2 trillion in the broader crypto market. The cryptocurrency is down roughly 26 per cent this year and has lost nearly half its value since last October. US-listed spot Bitcoin funds have experienced five consecutive weeks of outflows, totaling $3.8 billion, the longest streak since February 2025.

Market analysts caution that the recent slump reflects broader structural pressures rather than a single headline. “Bitcoin’s latest decline is driven by low liquidity and uncertainty, typical of a bear-market phase,” said Markus Thielen, head of research at 10x Research, forecasting potential further downside toward $50,000 before stabilizing.

Other factors, including investor rotation into gold and artificial intelligence stocks, concerns over Federal Reserve appointments, and the crypto market’s inherent four-year cycle, have also contributed to the decline, according to Matt Hougan, chief investment officer at Bitwise. Safe-haven assets like gold gained over 1 per cent on Monday, reinforcing the contrast with crypto markets.

Bitcoin traded near $65,000 on Monday, about which the analysts say that a decisive break below this level could bring $60,000 into play, while a rebound above $70,000 would be needed to shift market sentiment back in favor of bulls.