Bitcoin Crashes Below $65K: Trump Tariffs Expose Crypto's Risk-Asset Reality
The narrative is crumbling.
For years, crypto advocates have sold Bitcoin as "digital gold"—a hedge against geopolitical chaos, inflation, and market turmoil. But when President Trump dropped his 15% global tariff bomb on February 21st, Bitcoin didn't rally. It crashed 5% in hours.
Meanwhile, actual gold hit new highs.
What Happened
Trump's tariff announcement caught markets off guard. Despite the Supreme Court striking down earlier IEEPA tariffs, he pushed forward with a universal 15% levy on all imported goods. The message was clear: economic nationalism isn't going anywhere.
Bitcoin fell from ~$68,000 to below $65,000 in the aftermath. It's since tested $63,000—the lowest level since early February. The flagship cryptocurrency is now down 26% year-to-date and a staggering 47% from its October 2025 high of $125,000.
The Six Forces Crushing Crypto
According to market analysts, this isn't a single-event sell-off. It's a convergence of macro headwinds:
- Tariff Shock: Trump's 15% universal tariff spooked risk assets globally
- Tech Stock Collapse: Microsoft led a broader tech selloff that dragged sentiment
- Record Liquidations: $2.5-3.2 billion in liquidations hit leveraged positions
- ETF Outflows: Institutional Bitcoin ETFs flipped to net sellers
- Geopolitical Tension: U.S. military buildup around Iran adds war-risk premium
- Liquidity Vacuum: Low volume, weak conviction markets amplify every move
The Digital Gold Myth Dies Again
Here's what should worry crypto bulls: gold is rallying while Bitcoin dumps.
Spot gold climbed over 1% on the same day Bitcoin cratered. That's not how a safe-haven asset behaves. That's how a risk asset behaves.
Markus Thielen, head of research at 10x Research, cut through the noise: "Bitcoin's latest drop was driven less by a single headline and more by weak liquidity and low conviction in the market." He's calling for $50,000 before a durable bottom forms.
Crypto Stocks Bleed Too
The pain isn't limited to tokens:
- Strategy (MSTR): -2.5%
- Coinbase (COIN): -4.1%
- Robinhood (HOOD): -4.5%
- Block (SQ): -5%
When crypto infrastructure stocks are falling faster than the S&P 500, it's a sector-wide de-risking event.
What Comes Next
The four-year cycle crowd (yes, that's still a thing) argues this is a predictable retracement. Bitwise CIO Matt Hougan points to historical patterns, suggesting we're seeing a standard post-halving cooldown.
But here's the uncomfortable truth: there's no structural support level until $50K.
The Trump tariff situation is "more noise than a structural reset," according to some analysts. But noise can be deadly in a low-liquidity market. And with midterm elections approaching and geopolitical flashpoints multiplying, noise isn't going away.
The Takeaway
Stop calling Bitcoin "digital gold."
In moments of genuine market stress—tariff shocks, war scares, liquidity crunches—Bitcoin behaves like a high-beta tech stock, not a store of value. That's not inherently bad. It just means you should position accordingly.
Trade it like the risk asset it is. Not the hedge you wish it was.
