Bitcoin fell sharply in early Asia trading, dropping below the $65,000 threshold as renewed uncertainty over U.S. tariff policy unsettled risk markets. The original cryptocurrency slid as much as 4.8% to near $64,300, marking its lowest level since early February, while Ether declined more than 5%. The move underscores how digital assets remain tightly linked to macro sentiment, particularly during periods of policy volatility and geopolitical tension.

The selloff follows fresh turbulence in Washington. Despite a Supreme Court ruling that struck down President Donald Trump’s use of emergency authority to impose sweeping tariffs, the administration signaled that previously negotiated trade deals remain intact. Trump subsequently announced plans to raise a new global tariff from 10% to 15%, reigniting concerns about trade disruption and inflationary pressure.

Macro Crosscurrents Pressure Crypto Sentiment

The latest tariff headlines come amid broader fragility across global markets. U.S. stock futures fell, with S&P 500 contracts down 0.8% and Nasdaq 100 futures lower by 1%, while the dollar weakened. Although Asian equities posted gains, the risk-off tone in U.S. assets weighed on crypto markets.

Analysts note that Bitcoin has increasingly behaved like a high-beta macro asset rather than a pure alternative store of value. With geopolitical tensions surrounding Iran and persistent policy reversals from Washington, investors appear reluctant to add risk exposure. Market participants are closely watching the $60,000 level as a critical support zone.

Over the past 24 hours alone, the crypto market shed approximately $100 billion in capitalization, according to CoinGecko data. Derivatives positioning suggests downside hedging is concentrated near $60,000, reinforcing its technical importance.

Post-Election Rally Fully Unwound

Bitcoin’s recent weakness has erased the remaining gains from the rally that followed Trump’s reelection in November 2024. Optimism around a more crypto-friendly administration propelled the token above $126,000 last October before a sharp reversal triggered a prolonged correction.

Since that peak, the broader crypto market has lost more than $2 trillion in value. Smaller tokens have been hit disproportionately, highlighting the rotation away from speculative assets during heightened uncertainty. U.S.-listed spot Bitcoin ETFs have recorded five consecutive weeks of net outflows totaling $3.8 billion, the longest such streak since February of last year.

The data suggests institutional investors are reducing exposure, possibly awaiting clearer macro direction or stronger catalysts.

Narrative Vacuum and Technical Inflection Points

Market observers argue that Bitcoin is currently lacking a compelling forward narrative. Legislative developments such as the U.S. Clarity Act have failed to materially move prices, indicating that regulatory clarity alone may not be sufficient to reignite bullish momentum.

Technically, the $65,000 level is viewed as a key support threshold. A sustained break below it could open the door to a retest of $60,000. Conversely, bulls would need to reclaim the $70,000 mark to shift near-term sentiment and stabilize momentum.

Looking ahead, Bitcoin’s trajectory will likely hinge on macro drivers: tariff policy clarity, Federal Reserve interest-rate expectations, and geopolitical developments. In an environment defined by rapid policy shifts and fragile risk appetite, digital assets remain vulnerable to external shocks.

For now, the market appears to be bracing for further volatility, with investors balancing technical support levels against a complex and shifting macro backdrop.