Bitcoin fell more than 5% to below $65,000 on Monday after U.S. President Donald Trump announced plans to raise global tariffs to 15%.
The drop came as Asian equities rose in early trade, underscoring crypto’s divergence from regional stock markets amid renewed tariff uncertainty.
Bitcoin has seen a sharp sell-off since October last year when it crossed $125,000, with the downturn extending into the new year. The world’s largest cryptocurrency is down 26% so far this year and has lost over 47% since the October high.
Bitcoin drops
“We believe that the sudden uptick in tariff rates is causing investors to sell crypto assets in anticipation of a more serious market decline,” said Jeff Mei, COO at global blockchain technology company BTSE.
Investors are also concerned that the build-up of U.S. military forces around Iran raises the possibility of an armed conflict that could spread regionally and impact global trade flows, he added.
There has been massive U.S. military buildup in the Middle East, with Trump has signaling last Thursday that he would decide in the next 10 days whether to launch strikes against Iran.
Markus Thielen, head of research at market intelligence platform 10x Research, said bitcoin’s latest drop was driven less by a single headline and more by weak liquidity and low conviction in the market.
Thielen said the downturn fits a typical bear-market phase characterized by low volumes and uncertainty tied to U.S. midterm elections, expecting further downside toward $50,000 before a more durable bottom forms.
Safe-haven demand saw spot gold trading about 1.5% higher Monday, showing a strong divergence from bitcoin, which has often been referred to as “digital gold,” including by U.S. Federal Reserve Chair Jerome Powell.
Bitcoin was last at $64,816.8, down 5.3%, while ether — the second most popular cryptocurrency — was down nearly 6% at $1,865.7
Earlier this month, Bitwise Chief Investment Officer Matt Hougan attributed bitcoin’s slide primarily to the crypto market’s “four-year cycle,” arguing that the current retracement mirrors patterns seen in past downturns.
He had highlighted there was no single catalyst behind the losses, pointing instead to investors rotating into gold and artificial intelligence stocks, lingering concerns over Fed nominee Kevin Warsh and broader “quantum risk.”
Bitwise has more than $15 billion in assets under management, and is heavily into crypto ETFs.
— CNBC’s Blair Bao contributed to this report.