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Sam Cooling
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The Bitcoin price fell more than -5% overnight, which caused the asset known as ‘digital gold’ to break below the psychological $65,000 level after President Trump announced plans to raise global tariffs to 15%.
Tariff concerns have been at the root of much of the recent woes across the crypto markets, with Trump regularly sparking mass liquidations with talk of financial sanctions on China, the EU, and others.
This recent move triggered a sharp risk-off rotation across asset classes, causing a -3.2% slump across the total crypto market and leading to the Fear & Greed Index to drop to 5/100, a level not seen since the COVID crash of March 2020.
As of mid-morning on this Monday trading session, BTC USD has recovered slightly from its daily drop, reclaiming $65,000 and now trading at $65,700.
Why Are Trump’s Tariffs Rattling Crypto Markets?
The sell-off intensified after President Trump utilized Section 122 of the 1974 Trade Act to impose a 15% tariff on imports, overriding a prior Supreme Court rejection of similar measures, which has caused uproar across the US.
This regulatory unpredictability has spooked risk assets, causing a decoupling from regional stock markets. Jeff Mei, COO at BTSE, stated that the “sudden uptick in tariff rates is causing investors to sell crypto assets in anticipation of a more serious market decline.”
Beyond trade economics, geopolitical fears are compounding the selling pressure. With prediction markets pricing in potential military strikes against Iran, traders are liquidating speculative positions to secure capital.
The combination of aggressive trade policy and continued military provocations has created a hostile environment for risk-on assets like crypto.
At the same time, gold is back trading above $5,000 and looking set for a new all-time high while the S&P500 is trading just below its own previous highs, underscoring how crypto is the biggest casualty of the global economic situation.
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ETF Outflows Signal Institutional Caution for the Bitcoin Price
Institutional appetite appears to be waning alongside retail sentiment. According to CoinGlass data, US spot Bitcoin ETFs recorded nearly $320 million in net outflows last week, marking the fifth straight week of negative flows amid cooling demand.
While Gold gained +2.6% last week, continuing to act as a traditional safe-haven asset, Bitcoin has seemingly shed its “digital gold” narrative amid this ongoing volatility.
Markus Thielen, head of research at 10x Research, noted that the drop is driven less by a single headline and more by weak liquidity, suggesting the market is in a “typical bear-market phase” characterized by uncertainty and low conviction.
What Happens Next for Us?
The technical picture has obliterated immediate support levels. While traders were previously buying crash protection near $67,000, that floor has now crumbled.
This weakening price action is lending credibility to Standard Chartered, slashing its Bitcoin price prediction for 2026 to just $50,000.
Thielen expects further downside, potentially testing that $50,000 level before a true bottom can be formed.
Prediction markets verify this bearish outlook. Polymarket shows that 62% of users believe that Bitcoin USD will fall below $50,000 this year, aligning with Standard Chartered’s prediction.
Bulls must quickly reclaim $67,500 to prevent another cascading liquidation after more than $500M was wiped out in the past 24 hours.
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