Bitcoin Slips Below US$65,000 as Fresh Tariff Threats Unsettle Markets 

Bitcoin came under renewed pressure on Monday evening, falling below US$65,000 as broader risk sentiment weakened and leveraged positions were flushed out.

The move followed a sharp bout of volatility that saw roughly US$434 million in long liquidations, underscoring how quickly sentiment can shift when macro uncertainty intensifies.

A key driver appears to be a fresh wave of global market nerves after US President Donald Trump signalled a tougher trade stance. Over the weekend, Trump indicated he would look to lift the global tariff rate from 10% to 15%, adding another layer of uncertainty for investors already navigating a challenging macro backdrop. Markets have also been responding to mixed signals out of Washington, particularly following legal developments around the use of emergency powers to impose tariffs.

The result was a softer US dollar, weaker equity futures and another broad risk-off move across crypto.

Bitcoin’s latest decline adds to what has already been a significant pullback from prior highs, with the broader crypto market shedding substantial value in recent months. While crypto-specific narratives remain in play, price action continues to be driven largely by macro conditions, and there is no shortage of headwinds:

• Trade war uncertainty
• Rising geopolitical tensions in the Middle East
• Ongoing questions around the US interest rate path
• Broader market fragility, including concerns over AI-related valuations

This is not just a Bitcoin story; it reflects a broader shift in risk appetite.

Investors are also watching the US Federal Reserve closely. Recent commentary and meeting signals suggest the path for rates may be less straightforward than markets had hoped. Rather than focusing solely on cuts, some policymakers have highlighted inflation risks and the possibility that policy may need to remain restrictive for longer.

That matters for crypto. Higher-for-longer rates tend to weigh on risk assets, particularly when confidence is already fragile.

With prices falling and volatility elevated, sentiment has clearly softened. That is evident not only in price action, but also in investor positioning and broader sentiment indicators.

At the same time, long-term Bitcoin advocates maintain that the current weakness forms part of a broader cycle, and that the market can recover strongly once macro conditions stabilise.

Whether that recovery emerges in the near term will likely depend less on crypto headlines alone and more on developments across global markets, geopolitics and monetary policy.