Bitcoin fell by 5% to below $65,000 on Monday after U.S. President Donald Trump revealed plans to raise global tariffs to 15%. This decline highlights a growing separation between cryptocurrencies and Asian stock markets amidst ongoing tariff concerns.
Since reaching a high of $125,000 last October, Bitcoin has experienced a significant sell-off. It is down 26% in 2023, marking a total loss of over 47% since its peak last year.
Jeff Mei, COO of blockchain company BTSE, explained that rising tariff rates are prompting investors to sell cryptocurrencies, fearing a larger market downturn. Additionally, the increased presence of U.S. military forces near Iran has raised worries about possible conflicts that could disrupt global trade.
Markus Thielen from 10x Research noted that Bitcoin’s recent drop is not just due to the latest news but stems from weak market activity and investor uncertainty, especially with the upcoming U.S. midterm elections. He predicts that Bitcoin could fall further to around $50,000 before stabilising.
As Bitcoin struggled, gold prices rose by over 1%. Both assets usually behave differently, contributing to Bitcoin’s image as “digital gold.”
As of 03:47 a.m. ET, Bitcoin had reduced some of its losses, trading at $65,615, while Ether, the second largest cryptocurrency, fell by 3.3% to $1,878.
