Bitcoin slid earlier in the week, briefly dropping nearly 5% to trade under $65,000 after President Donald Trump said he intends to lift global tariff rates to 15%.
The decline in the world’s largest crypto stood in contrast to gains in Asian stock markets, which advanced in early trading hours. The split highlights how digital assets have recently moved independently from regional equities, particularly during periods of renewed tension over trade.
Shares of U.S. crypto-linked companies also retreated at the start of trading. Strategy fell about 2.5%, while Coinbase lost 4.1%. Robinhood dropped 4.5%, and Block declined roughly 5%.
Bitcoin has been under pressure for months. After climbing past $125,000 in October, the crypto entered a steep downturn that has continued into this year. It has dropped 26% since January and remains more than 47% below its autumn peak.
According to Jeff Mei, chief operating officer at BTSE, investors appear to be trimming crypto holdings out of concern that higher tariffs could trigger a wider market retreat. He added that geopolitical strains are also contributing to caution.
The U.S. has increased its military presence in the Middle East, particularly around Iran, raising fears of a wider conflict that could disrupt global commerce. Last week, Trump indicated he would decide within 10 days whether to authorize military action against Tehran, adding another layer of uncertainty for markets.
Markus Thielen of 10x Research noted that the latest leg down in Bitcoin cannot be tied to a single development. Instead, he cited thin trading volumes and limited investor conviction as key factors. In his view, the current pattern resembles a typical bear-market stretch marked by muted activity and caution ahead of the U.S. midterm elections. Thielen suggested that prices could drift toward $50,000 before a more stable floor is established.
Matt Hougan, chief investment officer at Bitwise Asset Management, argued that Bitcoin’s retreat reflects the industry’s recurring four-year cycle rather than a specific shock. He noted that similar pullbacks have followed prior rallies. Bitwise oversees more than $15 billion in assets, much of it tied to crypto-focused exchange-traded funds.
Hougan said there is no clear single trigger behind the latest downturn. Instead, he pointed to a shift in investor interest toward AI stocks and gold, as well as broader technological uncertainties and concerns surrounding Federal Reserve nominee Kevin Warsh.
While cryptos struggled, traditional safe-haven assets gained ground. Spot gold rose more than 1%, underscoring the divergence between bullion and Bitcoin. The losses being witnessed in the crypto market could impact the revenue forecasts of many companies like Canaan Inc. (NASDAQ: CAN) since their clients derive revenue from sales of BTC and other cryptos.
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