Bitcoin slid sharply in Asian early morning, falling more than 5% to below $65,000 after US President Donald Trump announced plans to raise global tariffs to 15%, intensifying risk aversion across financial markets.

The world’s largest cryptocurrency dropped to around $64,800, extending a broader downturn that has persisted since October, when bitcoin traded above $125,000.

It is now down about 26% year-to-date and more than 47% from its peak.

Ether and other major tokens followed the move, with ether declining nearly 6% to about $1,865.

Analysts pointed to a combination of macroeconomic and geopolitical factors behind the sell-off.

Jeff Mei, COO at blockchain technology company BTSE, said in a CNBC report that tariff fears were weighing heavily on sentiment.

“We believe that the sudden uptick in tariff rates is causing investors to sell crypto assets in anticipation of a more serious market decline,” Mei said.

He added that investors were also worried about escalating tensions in the Middle East, noting a US military build-up around Iran and the possibility of military action.

The sell-off intensified when bitcoin fell from roughly $67,600 to near $64,700 in less than two hours.

The move triggered widespread liquidations, with close to $360 million in long positions unwound within about an hour, according to Coinglass data.

Rachael Lucas, crypto analyst at BTC Markets, described the environment as fragile in a Block report. “This is a confluence of macro shocks hitting a market that was already fragile,” she said. “Geopolitical chaos out of Mexico is rattling risk appetite globally, and the worst pending home sales reading ever recorded in the US has compounded the nervousness.”

Lucas also noted weak trading conditions: “Bitcoin was already carrying five consecutive weeks of ETF outflows and spot volumes down 59% week on week, so the liquidity conditions to absorb a shock like this simply were not there. This is not a bitcoin-specific story. It is a risk-off story that bitcoin is absorbing first.”

Market researchers said the drop was not tied to a single catalyst.

Markus Thielen, head of research at 10x Research, attributed the decline to weak liquidity and low conviction.

He said the downturn resembled a bear-market phase characterized by low volumes and uncertainty tied to US midterm elections and projected potential downside toward $50,000 before a more durable bottom forms.

Additional pressure came from global financial conditions.

Kronos Research CIO Vincent Liu cited deleveraging linked to a surge in the Japanese yen and policy tightening expectations.

“Watch $60K for support — On the upside, reclaiming $65–66K could stabilize BTC, with $70K signaling a rebound but highly dependent on macro flows,” Liu said. “Relief could come from renewed ETF inflows, clearer regulatory signals, or Thursday’s initial jobless claims, which may provide insights or at minimum, a relief bounce.”

The downturn also reinforced a contrast between bitcoin and traditional safe-haven assets.

Spot gold rose about 1.5% as investors sought protection, despite bitcoin often being described as “digital gold.”

Bitwise CIO Matt Hougan said the decline reflected broader market cycles rather than a single event.

He attributed the slide partly to the crypto market’s “four-year cycle,” as well as investor rotation into gold and artificial intelligence stocks.

Despite near-term weakness, some indicators suggested underlying support.

Lucas noted that large investors accumulated about 200,000 BTC over the past month and pointed to historical patterns.

“On the catalyst side, the CLARITY Act moving through the Senate would provide the regulatory certainty the market needs to draw institutional capital back in,” she said. “The setup is there. The timing depends heavily on how quickly macro uncertainty resolves.”

For now, bitcoin’s direction appears tied less to crypto-specific developments and more to global macroeconomic conditions, trade policy, and geopolitical risk.

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