Bitcoin Slides Below $65K
Bitcoin fell as much as 5% and briefly dipped below $65,000 amid tariff uncertainty, with analysts attributing the decline to US tariff moves injecting volatility into crypto markets. US-listed Bitcoin ETFs experienced a historic five-week outflow streak totaling $3.8 billion, marking a significant reversal from earlier inflows. The cryptocurrency later stabilized between $64,000 and $65,000, though further volatility is expected.
- The tariff uncertainty stems from a new 15% global tariff announced by President Donald Trump under the Trade Act of 1974, following a Supreme Court decision that limited his authority to impose such duties through emergency powers. - The broader cryptocurrency market lost approximately $100 billion in value within 24 hours of the price drop. Ether, the second-largest cryptocurrency, also declined by 5.2%. - The recent market volatility triggered over $500 million in total liquidations of leveraged crypto positions over a 24-hour period. - BlackRock's iShares Bitcoin Trust (IBIT) accounted for the majority of the ETF outflows, shedding about $2.1 billion during the five-week streak. - Despite the significant outflows, total net inflows into spot Bitcoin ETFs since their launch remain substantial, estimated to be between $53 billion and $54 billion. - This marks Bitcoin's worst-ever start to a calendar year, with unprecedented back-to-back monthly losses in January and February. - Analysts are now closely watching the $60,000 price point as a critical psychological and technical support level for Bitcoin. - The Crypto "Fear and Greed Index," a measure of market sentiment, has dropped to a state of "extreme fear," suggesting widespread investor anxiety.
