Bitcoin Plummets Below $65K After Trump’s Tariff Plan

Bitcoin fell sharply on Monday, February 23, 2026, dropping more than 5% to trade below $65,000 as U.S. President Donald Trump announced plans to raise global tariffs to 15%. The move rattled risk sentiment across markets, highlighting the cryptocurrency’s increasing sensitivity to geopolitical and macroeconomic developments.

The decline, which saw Bitcoin briefly touch $64,300 – its lowest level since February 6, 2026 – occurred even as Asian equities rose in early trading, underscoring a divergence between traditional stock markets and the cryptocurrency space. Bitcoin is currently down 26% year-to-date and has lost over 47% of its value since reaching a peak of $125,000 in October of last year.

The tariff announcement, made via a Truth Social post on Saturday, followed a Supreme Court ruling that struck down Trump’s use of emergency authority to impose tariffs. Despite assurances from U.S. Officials that previously negotiated trade agreements would remain intact, Trump’s decision to increase the tariff rate from 10% to 15% injected fresh uncertainty into global markets.

“We believe that the sudden uptick in tariff rates is causing investors to sell crypto assets in anticipation of a more serious market decline,” said Jeff Mei, COO at global blockchain technology company BTSE. This sentiment reflects a growing concern that escalating trade tensions could negatively impact global economic growth, prompting a flight to safety.

Adding to investor anxieties is the escalating U.S. Military buildup in the Middle East. Trump signaled last Thursday that he would decide within ten days whether to launch strikes against Iran, raising the specter of a wider regional conflict and potential disruptions to global trade flows.

However, the downturn isn’t solely attributable to geopolitical concerns. Markus Thielen, head of research at market intelligence platform 10x Research, argued that the latest drop was driven more by weak liquidity and a lack of conviction in the market. He characterized the current market phase as a typical bear-market pattern, marked by low trading volumes and heightened uncertainty, particularly in the context of upcoming U.S. Midterm elections. Thielen anticipates further downside, potentially towards $50,000, before a more sustainable bottom is established.

The sell-off extended beyond Bitcoin, with Ether, the second-largest cryptocurrency, also experiencing a significant decline, falling nearly 6% to $1,865.7. This broad-based weakness suggests a systemic risk aversion within the crypto market, rather than a Bitcoin-specific issue.

Interestingly, the market reaction saw a flight *to* safe-haven assets, but not necessarily to Bitcoin. Spot gold prices rose approximately 1.5% on Monday, demonstrating a clear divergence from Bitcoin, which has often been touted as “digital gold.” This suggests that traditional safe havens continue to be favored during times of geopolitical and economic uncertainty, despite the narrative surrounding Bitcoin’s potential as a store of value.

The current downturn follows a period of significant volatility for Bitcoin. While the cryptocurrency experienced a surge in late 2023 and early 2024, it has been under sustained selling pressure since October. Bitwise Chief Investment Officer Matt Hougan recently attributed the slide to the crypto market’s cyclical nature, noting that the current retracement mirrors patterns observed in previous downturns. He emphasized that there was no single catalyst for the losses, pointing instead to investor rotation into assets like gold and artificial intelligence stocks, as well as lingering concerns surrounding regulatory developments.

The situation highlights the evolving role of Bitcoin within the broader financial landscape. While initially viewed as a purely speculative asset, it is increasingly being assessed alongside traditional investments and macroeconomic factors. The market’s sensitivity to tariff announcements and geopolitical tensions underscores its growing integration into the global financial system, and the associated risks.

The coming days will be crucial in determining the trajectory of Bitcoin and the broader cryptocurrency market. Investors will be closely watching for further developments regarding the U.S.-Iran situation, as well as any additional policy announcements from the Trump administration. The market’s response to these events will provide further insight into its resilience and its ability to navigate a complex and uncertain global environment.