Bitcoin fell sharply, dropping more than 5% to below $65,000 on Monday, as global markets reacted to heightened geopolitical and trade uncertainty. The sell-off was triggered by US President Donald Trump's announcement over the weekend to raise global tariffs to 15% from 10%, intensifying risk aversion across financial assets.
The decline saw Bitcoin slide from roughly $67,600 to around $64,700 within two hours, triggering approximately $360 million in long position liquidations. This extends a broader downturn for the cryptocurrency, which is now down about 26% year-to-date and more than 47% from its October peak above $125,000. Ether followed the move, declining nearly 6% to around $1,865.
Analysts pointed to a confluence of macro shocks behind the sell-off. Jeff Mei, COO at BTSE, stated that the tariff increase was causing investors to sell crypto assets in anticipation of a more serious market decline, compounded by escalating military tensions between the US and Iran. Rachael Lucas, a crypto analyst at BTC Markets, described the environment as fragile, citing geopolitical chaos and weak US economic data, including the worst pending home sales reading ever recorded.
The drop highlighted a divergence from traditional safe-haven assets, with spot gold rising about 1.5%-1.9% during the same period. Market researchers noted that weak liquidity conditions exacerbated the move, with Bitcoin experiencing five consecutive weeks of ETF outflows and spot volumes down 59% week-on-week, leaving the market ill-equipped to absorb such a shock.
Looking ahead, analysts are watching the $60,000 level for potential support. Kronos Research CIO Vincent Liu suggested that reclaiming the $65,000-$66,000 range could stabilize Bitcoin, but a rebound is highly dependent on macro flows and potential catalysts like renewed ETF inflows or clearer regulatory signals from legislation such as the CLARITY Act moving through the US Senate.
