Bitcoin Plunges Below $65K: Trump Tariff Fears Trigger Market Retreat

Risk assets take a hit as political uncertainty rattles traders.

The Tariff Tremor

A fresh wave of protectionist rhetoric from the former president sends shivers through speculative markets. Digital gold, it seems, isn't immune to old-school political headwinds. Capital flees to perceived safety, proving once again that in a panic, even crypto degens reach for the traditional life raft.

Liquidity Lockdown

The knee-jerk sell-off highlights the market's lingering sensitivity to macro noise. Every headline becomes a potential catalyst, with algorithmic traders amplifying the move. It's a stark reminder that adoption narratives clash with institutional risk models when volatility spikes.

The Silver Lining Playbook

For veterans, this is just another dip-buying signal wrapped in a fear cycle. The infrastructure—miners, nodes, wallets—keeps humming. Short-term political theater rarely derails long-term technological trajectories, though it does separate the believers from the tourists. After all, what's a 10% swing between friends in an asset that routinely laughs at conventional valuation?

Another day, another discount—courtesy of the political circus. The suits on Wall Street will cluck about 'risk management' while quietly scaling into positions. Some things never change.

(SOURCE: CoinGecko)

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.

(SOURCE: PolyMarket)

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.

ETF Outflows Signal Institutional Caution for the Bitcoin Price

(SOURCE: CoinGlass)

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.

Standard Chartered warns Bitcoin could drop to $50K
Price now near $65K
Are you buying this dip… or waiting for capitulation? $BTC $ETH

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.