BTC fell more than 5 percent on Monday, dropping below $65,000 after US President Donald Trump announced plans to raise global tariffs to 15 percent.
According to CNBC, the world’s largest cryptocurrency has been under pressure since reaching a high above $125,000 in October, and is now down 26 percent this year and more than 47 percent from its peak.
“We believe that the sudden uptick in tariff rates is causing investors to sell crypto assets in anticipation of a more serious market decline,” Jeff Mei, COO at blockchain company BTSE, said, as per the outlet.
Investors are also watching rising geopolitical tensions. Mei noted concerns about the buildup of US military forces near Iran and the potential impact on global trade.
Markus Thielen of 10x Research said the decline was driven by weak liquidity and low conviction rather than a single headline. He expects further downside toward $50,000 before a stronger bottom forms.
Safe haven demand pushed spot gold about 1.5 percent higher Monday, highlighting the contrast with BTC, which has often been called digital gold.
BTC was last trading at $64,816.8, while ether fell nearly six percent to $1,865.7.
