Bitcoin and other major cryptocurrencies fell sharply after US President Donald Trump announced plans to raise global tariffs to 15%, adding new uncertainty to already fragile markets.
Bitcoin briefly dropped by more than 5% and fell below $65,000 (about €59,800), while Ethereum and other large cryptocurrencies also moved lower. The decline followed the tariff announcement and came amid wider concerns over trade disruption and global growth.
The move was notable because it came while some Asian equity markets were trading higher, suggesting that crypto was reacting more sharply than parts of the regional stock market to tariff-related uncertainty. This reinforced the view that cryptocurrencies are currently being treated by many investors as higher-risk assets rather than safe havens.
Major cryptocurrencies also declined
Market prices cited in reports on Sunday evening (US time) showed broad losses across the crypto market. Bitcoin traded around $65,064 (about €59,859), down roughly 4.4% over 24 hours, while Ethereum traded near $1,872 (about €1,722), down more than 5%. Other major cryptocurrencies also fell, including XRP, Solana and Dogecoin.
Later, Bitcoin reportedly recovered part of the loss and was quoted around $65,283 (about €60,060), while Ether was around $1,913 (about €1,760) in early US trading.
Why tariffs affected crypto
Tariffs are taxes on imported goods. When tariffs increase, investors often worry about slower trade, higher costs and weaker growth. In that environment, money tends to move out of riskier assets first.
That appears to have been part of the immediate reaction in crypto markets after Trump’s announcement. At the same time, gold rose, pointing to a shift towards more traditional safe-haven assets. CNBC reported that spot gold was up more than 1%, highlighting the contrast with Bitcoin, which is often described as “digital gold”.
Analysts say the sell-off reflects wider market weakness
Several analysts cited in media reports said the tariff announcement may have been the trigger, but not the only cause of the latest drop.
According to CNBC, Jeff Mei, chief operating officer of BTSE, said the sudden rise in tariff rates appeared to be causing investors to sell crypto assets in anticipation of a deeper market decline. CNBC also reported his comments that investor caution was being increased by concerns over US military build-up around Iran and the risk of a wider regional conflict affecting trade flows.
Also cited by CNBC, Markus Thielen of 10x Research said Bitcoin’s decline was driven less by one headline and more by weak liquidity and low conviction in the market, and that he expected further downside before a more durable bottom forms.
Separately, Benzinga reported comments from crypto analyst Ali Martinez, who said Bitcoin was approaching a possible “death cross” pattern and warned that past cycles had shown a further “final leg down”. Benzinga also cited market commentator DonAlt, who said more aggressive bullish traders would want to see Bitcoin close above at least $71,000.
Broader crypto weakness continues
The latest move comes after months of pressure on Bitcoin. CNBC reported that Bitcoin has been in a sharp sell-off since October, when it crossed $125,000, and that it is down around 26% so far this year and more than 47% below its October high.
CNBC also reported that US-listed crypto-linked companies, including Strategy, Coinbase, Robinhood and Block, fell in premarket trading after the renewed crypto weakness.
Crypto remains highly sensitive to political and economic shocks. Trump’s tariff announcement added another blow to a market that was already under pressure, while investors seeking safety appeared to favour gold rather than digital assets.
(EUR conversions are approximate, using an indicative rate of $1 = €0.92 for readability.)
