Cryptocurrency
Bitcoin Slides Below $65,000 as Trump Tariff Plans Rattle Crypto Markets
Bitcoin tumbled more than 3% on Monday, briefly falling below $65,000, after Donald Trump announced plans to raise global tariffs to 15%. The proposed tariff expansion has triggered renewed uncertainty across financial markets, sending shockwaves through the cryptocurrency sector.
At its intraday low, Bitcoin dropped nearly 5%, extending a broader downturn that has gripped the world’s largest cryptocurrency since late last year. After soaring past $125,000 in October, Bitcoin has now fallen roughly 47% from its peak and is down 26% year-to-date.
The latest decline highlights how crypto markets remain sensitive to macroeconomic developments, especially shifts in U.S. trade policy and geopolitical risk.
Divergence From Traditional Markets
Interestingly, Bitcoin’s drop occurred even as Asian equity markets opened higher, underscoring crypto’s divergence from traditional stocks. While equities appeared to shrug off the Trump tariff news in early trading, digital assets reacted sharply.
Market analysts suggest that rising tariff tensions could slow global trade, dampen economic growth, and reduce investor appetite for high-risk assets like cryptocurrencies.
Many experts said the sudden tariff hike likely prompted investors to offload crypto holdings in anticipation of a broader market correction.
Geopolitical Risks Add Pressure
Beyond trade tensions, geopolitical uncertainty is also weighing on investor sentiment. Reports of increased U.S. military deployments in the Middle East, coupled with signals from the White House about possible action against Iran, have amplified fears of regional conflict.
Such developments could disrupt global trade flows and increase volatility across asset classes. In times of geopolitical strain, investors often rotate into perceived safe-haven assets, reducing exposure to speculative instruments.
“Digital Gold” Debate Intensifies
The sell-off has renewed debate over Bitcoin’s role as “digital gold.” The term has been used by policymakers, including Jerome Powell, to describe Bitcoin’s perceived store-of-value potential.
However, while spot gold prices climbed more than 1% amid rising uncertainty, Bitcoin moved in the opposite direction. This divergence raises questions about whether cryptocurrencies can truly function as safe-haven assets during periods of macroeconomic stress.
Meanwhile, Ethereum, the second-largest cryptocurrency, also fell nearly 4% to trade below $1,900.
What Comes Next for Crypto?
With trade tensions escalating and geopolitical risks simmering, the cryptocurrency market is poised for heightened volatility in the weeks ahead. Whether Bitcoin stabilizes near current levels or continues its downward trajectory will likely depend on global policy decisions, liquidity conditions, and investor sentiment.
For now, the crypto market remains firmly in risk-off mode amid uncertainty about the outlook for digital assets in 2026.
