Bitcoin Drops Near $64,000 as U.S. Tariff Tensions Rise

Bitcoin dropped in price sharply on Monday, falling close to $64,000. This caused a risk-off sentiment in global markets as investors faced renewed uncertainty due to developments in U.S. tariff policies.

According to market data compiled from CoinMarketCap and Bloomberg, the largest cryptocurrency in the world fell by about 4.5% to 5%. In early Asian trading, Bitcoin fell as low as roughly $64,300, its lowest level since early February.

The sell-off erased recent gains and left cryptocurrency traders on edge, in contrast to the modest price strength seen last weekend.

Macro Shock: Trade Policy in Focus

The decline came after the U.S. Supreme Court overturned key parts of former President Donald Trump’s earlier tariff measures. Trump quickly turned to Section 122 of the 1974 Trade Act to impose a new 15% global tariff on imports, circumventing the legal challenge.

Trump announced this higher tariff via social media over the weekend, a move that unsettled markets and heightened fears of a broader trade conflict. “As President of the United States of America, I will be, effective immediately, raising the 10% Worldwide Tariff … to the fully allowed … 15% level,” he wrote in a social media post outlining the policy change.

The tariff added volatility to expectations for cross-border trade and heightened existing geopolitical tensions. This is especially true for coins like Bitcoin, which are seen as riskier during economic stress.

Traders React

Market observers connected the cryptocurrency’s drop directly to increased risk aversion. Riya Sehgal, a Research Analyst at Delta Exchange, told reporters, “The turnaround on tariff policy has jolted investor confidence, triggering a rotation out of high-volatility assets like Bitcoin and into traditional safe havens.”

Liquidity conditions worsened the downturn. Data from CoinGlass showed that more than $350 million worth of bullish crypto bets were wiped out as falling prices triggered automatic liquidations across major exchanges.

At the same time, the broader cryptocurrency landscape faced pressure. Ethereum, the second-largest token, dropped over 5%, while smaller altcoins saw even deeper declines. This reflects a widespread negative sentiment throughout digital assets.

Wider Market Ripples

Bitcoin’s decline coincided with negative reactions in equity futures and currency markets. S&P 500 and Nasdaq 100 futures fell, while the U.S. dollar weakened slightly against other major currencies as risk appetite declined. Safe-haven commodities like gold saw an increase, attracting investment that might have otherwise gone to riskier tokens.

Analysts noted that Bitcoin’s drop has wider implications for sentiment in markets where digital assets intersect with macro risk factors.

“The crypto market continues to be fragile,” said Caroline Mauron, co-founder of Orbit Markets. “Participants are closely watching key support levels, and macro uncertainty weighs heavily—from tariff shifts to global geopolitical tensions.”

Looking Ahead

The near-term outlook remains weak, but some analysts believe Bitcoin’s current vulnerability could pave the way for future rebounds once risk sentiment stabilizes.

Traders are keeping a close eye on technical support between $60,000 and $64,000, viewing it as a potential pivot point. A break below that range could lead to deeper corrections.

For now, Bitcoin finds itself at the intersection of market dynamics and global policy uncertainty. It highlights that even decentralized digital assets remain sensitive to geopolitical and economic forces.