Bitcoin fell more than three percent on Monday after U.S. President Donald Trump announced plans to raise global tariffs to 15 percent, triggering renewed uncertainty across financial markets.
The world’s largest cryptocurrency dropped as much as five percent to trade below US$65,000 in early Asian hours before paring some losses. By around 0018 GMT, bitcoin was down about three percent at roughly US$65,167.
The decline came even as Asian equity markets opened higher, underscoring what analysts described as a divergence between digital assets and regional stock performance amid escalating trade tensions.
Market participants said the proposed tariff increase raised concerns about potential disruptions to global trade and growth, prompting some investors to trim exposure to riskier assets such as cryptocurrencies.
Bitcoin has been under sustained pressure since October last year, when it climbed above $125,000 before entering a prolonged downturn. The cryptocurrency is down roughly 26 percent so far this year and has lost more than 47 percent from its October peak.
Analysts said the latest move appeared to reflect broader fragility in the crypto market rather than a single headline catalyst. Weak liquidity conditions and subdued trading volumes have amplified price swings in recent weeks, they added.
Some investors also pointed to geopolitical tensions in the Middle East, where a U.S. military build-up has heightened concerns about possible conflict involving Iran, as an additional factor weighing on sentiment.
The slide in bitcoin contrasted with gains in gold, traditionally viewed as a safe-haven asset. Spot gold prices rose more than one percent on Monday, highlighting a widening gap between the precious metal and bitcoin, which has often been described by proponents as “digital gold.”
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Ethereum, the second-largest cryptocurrency by market value, also fell, dropping nearly four percent to trade around US$1,867.
Market observers noted that bitcoin’s recent weakness follows a period of strong gains earlier in its rally cycle, with some analysts arguing that the current retracement is consistent with historical downturn patterns seen after major price peaks.
Despite the pullback, longer-term investors remain divided over the outlook. While some expect further declines toward the US$50,000 level before a more durable floor is established, others argue that structural demand for digital assets remains intact, supported by institutional adoption and the expansion of crypto-linked financial products.
For now, traders said the market is likely to remain sensitive to developments in U.S. trade policy, geopolitical tensions and broader shifts in global risk appetite.
Bitcoin was created in 2009 as a decentralised digital currency operating without a central authority. Over the past decade, it has evolved from a niche technology experiment into a globally traded financial asset, attracting retail and institutional investors alike. Its price is driven largely by market sentiment, liquidity conditions and macroeconomic developments rather than traditional fundamentals.
Bitcoin is often described by supporters as “digital gold” because of its capped supply of 21 million coins and its perceived role as a hedge against inflation and currency debasement. However, unlike physical gold, the cryptocurrency has historically traded more like a high-risk technology asset, rising sharply during periods of abundant liquidity and falling during episodes of global uncertainty.
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The crypto market has experienced repeated boom-and-bust cycles. After surging to record highs above $125,000 in October 2025, bitcoin entered a prolonged correction. Such pullbacks are not uncommon in its history, with previous downturns in 2018 and 2022 wiping out more than half of its market value before eventual recoveries.
Macroeconomic policy plays an increasingly significant role in bitcoin’s price movements. Shifts in U.S. interest rate expectations, inflation data and global trade policy can influence investor appetite for speculative assets. When risk sentiment deteriorates for example, amid concerns over tariffs or geopolitical tensions — investors often rotate into traditional safe havens such as gold and government bonds, pressuring cryptocurrencies.
Trade policy uncertainty has historically weighed on global markets by raising fears of slower economic growth, supply chain disruptions and reduced cross-border investment. Tariff increases can strengthen the U.S. dollar in the short term, which may also affect dollar-denominated assets like bitcoin.
Geopolitical tensions, particularly in energy-producing regions, can further heighten volatility. While some crypto proponents argue that decentralised assets offer protection against political risk, bitcoin has frequently sold off alongside equities during global shocks, suggesting it remains closely tied to broader financial market dynamics.
Institutional participation has expanded significantly in recent years through crypto exchange-traded funds and regulated custodial services. While this has increased market depth, it has also strengthened correlations between cryptocurrencies and traditional financial markets, especially during periods of stress.
As a result, bitcoin’s trajectory is now shaped not only by developments within the crypto ecosystem but also by global monetary policy, fiscal decisions and geopolitical events. Analysts say that until market liquidity improves and macroeconomic uncertainty subsides, price swings are likely to remain pronounced.
