Bitcoin Slips Below $65K as Trump Tariff Fears Shake Markets
Bitcoin endured a rough night, falling more than 5% and briefly slipping below the key $65,000 level after President Trump revealed plans to raise global tariffs to 15%.
The move rattled investors across financial markets. Crypto, often branded as “digital gold,” didn’t act like a safe haven this time. Instead, it joined the broader sell-off as traders rushed to reduce risk.
Tariff concerns have weighed heavily on crypto in recent months. Each time Trump signals tougher trade measures — whether targeting China, the EU, or other partners — markets react sharply. The latest announcement was no different, triggering liquidations across major digital assets.
The total crypto market dropped 3.2%, and the Fear & Greed Index plunged to 5/100 — a level not seen since the panic of March 2020 during the COVID crash.
By mid-morning Monday, Bitcoin (BTC) had staged a mild recovery, climbing back above $65,000 and trading around $65,700 after the overnight slide.
Why Trump’s Tariffs Are Hitting Crypto So Hard
The sell-off accelerated after Trump invoked Section 122 of the 1974 Trade Act to impose a 15% tariff on imports, sidestepping an earlier Supreme Court rejection of similar measures. The decision has sparked political and economic backlash across the U.S.
For investors, it’s not just about trade — it’s about uncertainty. Sudden shifts in policy make markets nervous, and riskier assets like crypto often feel the pressure first.
Jeff Mei, COO at BTSE, said the abrupt tariff increase is prompting investors to sell crypto in anticipation of deeper market turbulence.
At the same time, geopolitical tensions are adding fuel to the fire. Prediction markets are increasingly pricing in the possibility of military escalation involving Iran, which is pushing traders to reduce speculative exposure and preserve capital.
The mix of aggressive trade policy and rising geopolitical risks has created a tough environment for “risk-on” assets like cryptocurrencies.
Meanwhile, traditional safe havens are benefiting. Gold continues to climb toward new highs, while the S&P 500 remains close to record territory — a stark contrast to crypto’s sharp pullback.
ETF Outflows Suggest Institutions Are Pulling Back
Institutional demand appears to be cooling as well.
According to CoinGlass data, U.S. spot Bitcoin ETFs recorded nearly $320 million in net outflows last week, marking the fifth consecutive week of withdrawals. That steady drain suggests large investors are growing more cautious.
Gold, by comparison, rose 2.6% last week, reinforcing its role as a traditional safe haven. Bitcoin, for now, seems to be drifting away from its “digital gold” narrative during periods of heightened volatility.
Markus Thielen, head of research at 10x Research, argues the decline isn’t tied to one headline alone. Instead, he points to weak liquidity and fragile sentiment — conditions typical of a bear-market phase marked by low conviction and heightened uncertainty.
What Comes Next?
Technically, the breakdown below $67,000 has damaged near-term support. That level had previously attracted buyers seeking downside protection, but the floor has now given way.
Some analysts are turning more cautious. Standard Chartered recently cut its 2026 Bitcoin price forecast to $50,000, citing weakening momentum.
Thielen also sees the possibility of further downside, suggesting Bitcoin could test the $50,000 area before forming a durable bottom.
Prediction markets reflect this growing skepticism. On Polymarket, 62% of participants currently believe Bitcoin will fall below $50,000 this year — aligning with the more bearish outlook from traditional financial institutions.
