Bitcoin Slides Toward $65,000 As Tariff Shock Rattles Risk Appetite

(MENAFN- Khaleej Times) Bitcoin retreated sharply toward the $65,000 level on Monday as global investors turned cautious following a US court ruling on tariffs and fresh trade policy uncertainty, highlighting the cryptocurrency’s continued sensitivity to macroeconomic shocks and institutional fund flows.

The world’s largest cryptocurrency fell as much as 5 per cent in early trading before stabilising near $65,000, extending a volatile stretch that has seen digital assets struggle to regain upward momentum. The latest slide comes after the US Supreme Court struck down sweeping tariff powers previously invoked by the Trump administration, only for Washington to quickly announce a new 15 per cent tariff on global imports, reigniting concerns over trade tensions and global growth.

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Cyrpto experts say if current pressure factors persist, including policy uncertainty, high yields and weak institutional demand, the cryptocurrency could retest support near $60,000 or lower before a more durable recovery emerges.

Market participants said the US policy reversal has unsettled global capital flows and weakened appetite for high-risk assets such as cryptocurrencies. The tariff developments have added to an already complex backdrop marked by elevated interest rates, persistent inflation concerns and subdued institutional inflows into crypto markets.

Linh Tran, senior market analyst at XS, said Bitcoin’s decline by nearly 4 per cent to around $65,000 in Asian trading reflects a return of caution across risk asset markets.“Bitcoin’s earlier rebound from around $60,000 lacked confirmation from strong capital inflows and was not sufficient to reverse the medium-term downtrend,” Tran said in a note.“The market is being influenced by global trade policy uncertainty, weakening institutional flows, a prolonged high-interest-rate environment and a stronger US dollar.”

The court ruling and subsequent tariff announcement have amplified uncertainty around global trade and supply chains, prompting investors to shift toward cash, bonds and traditional safe havens. Analysts say such“risk-off” sentiment typically weighs on cryptocurrencies, which tend to perform best in periods of abundant liquidity and strong risk appetite.

Institutional demand, once a key driver of Bitcoin’s rally, has also weakened noticeably. US spot Bitcoin exchange-traded funds have recorded substantial outflows, with more than 100,000 Bitcoin withdrawn from ETF holdings since October 2025, bringing total holdings to roughly 1.26 million Bitcoin. Analysts said the decline in ETF flows signals cautious institutional positioning and reduces the likelihood of a sustained bullish cycle in the near term.

Jeff Mei, chief operating officer at global blockchain firm BTSE, said rising trade tensions are prompting investors to trim exposure to volatile assets.“The sudden increase in tariff rates is causing investors to sell crypto assets in anticipation of a more serious market decline,” Mei said, adding that geopolitical risks and potential disruptions to global trade flows are also weighing on sentiment.

Bitcoin has now fallen roughly 26 per cent since the start of the year and more than 47 per cent from its October peak above $125,000, underscoring the scale of the ongoing correction. Crypto-linked stocks have also come under pressure, with shares of major US crypto firms declining in pre-market trading alongside the broader digital asset sell-off.

Markus Thielen, head of research at market intelligence platform 10x Research, said the latest decline reflects deeper structural weakness rather than a single headline event.“The downturn fits a typical bear-market phase characterised by low liquidity and low conviction,” he said, adding that uncertainty surrounding US policy and global macro trends continues to cap upside potential. Thielen expects further downside risks in the near term if liquidity conditions remain tight.

Recent US economic data has reinforced the higher-for-longer interest rate narrative, another headwind for Bitcoin. Core inflation readings remain firm, while US gross domestic product growth of 1.4 per cent and resilient labour market data suggest the Federal Reserve may delay monetary easing. Elevated Treasury yields and a firmer dollar have historically pressured cryptocurrencies by reducing the appeal of non-yielding assets.

Safe-haven assets such as gold have moved in the opposite direction, rising more than 1 per cent as investors seek stability amid geopolitical and policy uncertainty. The divergence has challenged Bitcoin’s narrative as“digital gold,” highlighting its continued correlation with risk assets rather than traditional safe havens.

Despite the downturn, some analysts believe Bitcoin retains support at lower levels due to long-term investor interest and the absence of severe liquidity stress. However, a sustained recovery will likely depend on renewed ETF inflows, clearer signals of monetary easing from the Federal Reserve and stabilisation in global trade and geopolitical conditions.

In the near term, traders expect Bitcoin to fluctuate within a wide range, with $65,000 acting as a key support level and the $69,000–$70,000 zone forming a major resistance barrier. Cyrpto experts say if current pressure factors persist, including policy uncertainty, high yields and weak institutional demand, the cryptocurrency could retest support near $60,000 or lower before a more durable recovery emerges.

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