Bitcoin is not having a good time at the market. Bitcoin fell as much as 5% to below $65,000 on Monday after President Donald Trump announced plans to raise global tariffs to 15%.
“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.
The drop came as Asian equities rose in early trade, underscoring crypto’s divergence from regional stock markets amid renewed tariff uncertainty.
READ: Bitcoin extends decline, hovers near crucial $70,000 mark (
What is Bitcoin?
Bitcoin is a decentralized digital currency that allows people to send and receive money over the internet without supposedly relying on a bank or government. It was introduced in 2009 by an anonymous person or group using the name Satoshi Nakamoto. Bitcoin operates on a technology called blockchain, a public ledger that records all transactions across a network of computers.
Transactions are verified by participants called miners, who use powerful computers to solve complex mathematical problems. In return, they are rewarded with newly created bitcoins. Unlike traditional currencies, Bitcoin has a limited supply—only 21 million coins will ever exist—which supporters say helps protect it from inflation.
People use Bitcoin for online purchases, investment, and transferring money internationally. Its value can change quickly due to market demand. While some view it as a revolutionary financial innovation.
READ: UAE firm acquires $500 million stake in Trump’s cryptocurrency company (February 2, 2026)
Investors are also concerned that the build-up of U.S. military forces around Iran raises the possibility of an armed conflict that could spread regionally and impact global trade flows.
Markus Thielen, head of research at market intelligence platform 10x Research, said bitcoin’s latest drop was driven less by a single headline and more by weak liquidity and low conviction in the market.
The volatility also reflects the supposed still-maturing nature of the cryptocurrency market. Factors such as low liquidity, uneven adoption, and varying levels of investor confidence may amplify price swings. Unlike more established markets, Bitcoin lacks the stabilizing mechanisms found in conventional financial systems, making it prone to rapid corrections in response to both real-world events and speculative activity.
Stakeholders—whether individual investors, institutional participants, or policymakers—will need to weigh both the opportunities and the risks carefully as the cryptocurrency ecosystem continues to evolve.