Bitcoin’s value plunged more than 5% this morning, falling below $65,000, following the announcement by U.S. President Donald Trump of plans to raise global tariffs to 15%. The move unsettled market sentiment, sending the world’s largest cryptocurrency to as low as approximately $64,300 – a level not seen since February 6th. Ether, the second-largest cryptocurrency, experienced even sharper declines, dropping 5.2%.
The sell-off occurred after U.S. Officials on February 22nd reaffirmed that existing trade agreements with partners remained valid, despite a recent Supreme Court ruling that rejected President Trump’s use of emergency powers to impose tariffs. On February 21st, President Trump had announced an increase in global tariffs to 15%, up from the 10% previously declared just a day earlier. This action triggered significant economic disruption and a sharp decline in U.S. Dollar and U.S. Stock index futures during early Asian trading.
Caroline Mauron, co-founder of Orbit Markets, noted the current fragility of the cryptocurrency market. “Macroeconomic uncertainties, ranging from geopolitical tensions in Iran to the impact of U.S. Tariff policies, are significantly weighing on investor sentiment,” she said. Analysts are now watching the $65,000 level as a critical technical support for Bitcoin.
Rachael Lucas, an analyst at BTC Markets, cautioned that Bitcoin could retest the $60,000 mark if it fails to hold above its current level. Conversely, she stated, a move above $70,000 would be needed to drive buying pressure and shift market dynamics in a more positive direction. The volatility demonstrates, once again, that digital assets are increasingly reactive to political and macroeconomic decisions emanating from the White House, rather than functioning as the independent “safe haven” some investors had hoped for.
The Supreme Court’s decision on February 20th had initially declared President Trump’s expansion of global tariffs unlawful, according to CoinDesk. However, the ruling did not clarify the fate of already collected tariff revenue and does not necessarily preclude further action by the Trump administration through alternative legal and executive avenues.
Interactive Crypto reported that Bitcoin briefly rose to $67,869 following the initial tariff announcement, before succumbing to the broader market downturn. The Handelsblatt noted that Bitcoin had fallen as low as $106,000 at one point on Friday, while Ether lost 14% of its value, falling to $4,713. Smaller cryptocurrencies likewise experienced substantial losses, with XRP down 28% and Dogecoin losing a third of its value.
On February 23rd, President Trump announced he had signed the papers for a baseline tariff of ten percent, according to ZDFHeute. He stated on his Truth Social platform that the tariff would take effect “almost immediately.”