Bitcoin Plunges Over 5% Below $63,000: Tariff Tensions and Geopolitical Fears Spark Major Crypto Sell-Off
What Happened to Today?
Bitcoin took a big hit on Tuesday. It dropped more than 5% and fell below $63,000. The price hit a low of $62,964.64. This comes as investors pull back from risky assets like crypto.
The
Why Is Falling? Key Reasons Explained
Several big factors are behind this
Geopolitical risks are also playing a role. Last week, talks about possible U.S. action against Iran made headlines. Tensions in the Middle East are rising, with more U.S. military moves in the area. These events make investors nervous and lead to sell-offs.
Experts agree this is not just a crypto problem. Christopher Hamilton from Invesco called it a “classic risk-sentiment reset.” He says it looks like short-term caution, not a full exit from Bitcoin.
Rough Road in Recent Months
Bitcoin has been sliding for a while. Back in October last year, it topped $125,000. But since then, it lost 50% of its value. This year alone, it is down 27%.
- October high: Over $125,000
- Year-to-date loss: 27%
- From peak: Down 50%
This sell-off started late last year and continues into 2025. Global events keep pressuring the price.
Expert Views on the
Billy Leung from Global X Australia points out Bitcoin’s weak spot. “Bitcoin stays very sensitive to global money conditions,” he said. If trade rules tighten cash flow, crypto drops fast.
Hamilton adds that this is “tactical de-risking.” Investors are stepping back for now, but they may return if risks ease.
How Other Assets Reacted
The fear is not limited to crypto. Spot gold fell 1% to $5,171.87 per ounce. Ether, the next big crypto, lost over 1% to $1,831.52.
Stock markets may also feel the heat. When risk-off mood hits, safe assets like bonds or gold gain, while stocks and crypto suffer.
Lessons from History: How Handles Crises
Bitcoin has faced big drops before. In past trade wars or wars, it often falls with stocks but bounces back strong. For example:
- 2018-2019 trade tensions: Bitcoin crashed 80% but later surged.
- 2022 Ukraine crisis: Short dip, then recovery.
Right now, the <5% Bitcoin crash> fits this pattern. It shows crypto’s link to world events.
What Does This Mean for Investors?
If you hold Bitcoin, stay calm. This drop may be temporary. Watch these signs:
- News on tariffs and Iran.
- Global stock indexes like S&P 500.
- Bitcoin funding rates and whale moves.
Long-term fans see Bitcoin as digital gold. It could shine if inflation rises from tariffs. But short-term, more pain is possible.
Future Outlook: Will Recover Soon?
No one knows for sure. If tensions cool, Bitcoin could climb back above $65,000. But if trade wars worsen, it might test $60,000 support.
Key levels to watch:
| Level | What It Means |
|---|---|
| $65,000 | Resistance – break for recovery |
| $60,000 | Support – hold here is key |
| $55,000 | Next big drop zone |
Bitcoin’s tie to liquidity means Fed rate cuts could help. Stay updated on policy news.
Final Thoughts on the
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For new investors, this is a reminder: Crypto is volatile. Do your research and don’t invest more than you can lose. The market will keep moving – are you ready?
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