Bitcoin falls below $65,000 as Trump's tariffs rattle global markets
Bitcoin falls below $65,000 as Trump's tariffs rattle global markets
Bitcoin, the world's largest cryptocurrency, has hit an eight-month low after falling below the $65,000 mark today.
The drop comes amid uncertainty over US tariffs imposed by President Donald Trump.
Riya Sehgal from Delta Exchange said Trump's 15% global-tariff announcement rattled global-risk assets and triggered a sharp risk-off rotation with capital flowing toward safe-havens like gold and silver.
Cryptocurrency's value has fallen sharply since October last year
On February 20, the US Supreme Court struck down Trump's IEEPA-enabled global tariffs. However, the Republican leader re-imposed 10% duties under Section 122 within hours, which were then raised to 15% on February 21.
The cryptocurrency's value has fallen sharply since October last year when it crossed $125,000. It is down by 26% this year alone and over 47% from its October peak.
US military buildup near Iran raises fears of potential conflict
Jeff Mei, COO at global blockchain technology company BTSE, said the sudden rise in tariff rates is prompting investors to offload crypto assets in anticipation of a deeper market correction.
He also noted that the US military buildup near Iran has raised fears of a potential regional conflict that could disrupt global trade flows.
More downside toward $50,000 expected
Markus Thielen, head of research at market intelligence platform 10x Research, said Bitcoin's latest drop is less about a single headline and more about weak liquidity and low conviction in the market.
He expects further downside toward $50,000 before a more durable bottom forms.
This downturn fits a typical bear-market phase characterized by low volumes and uncertainty.
Ethereum and other popular tokens also decline
The broader cryptocurrency market has also been affected by Bitcoin's decline. The second-largest token, Ethereum, has also slipped 5.2%.
The overall crypto market cap was in the red at $2.23 trillion with trading volumes at $67.07 billion, according to CoinMarketCap data.
Popular tokens like XRP and Binance have also dropped due to the current market conditions.