The market plunged sharply on Monday, with BTC briefly falling below $65,000, as traders reacted to a mix of shifts in US trade policy, geopolitical risks and looming economic data. The sudden losses have wiped out the weekend’s gains and pushed the market deeper into extreme fear, currently at 5.
The total market capitalization of cryptocurrencies fell by about 3 to 5% within a day, approaching the $2.2 trillion mark. The downturn coincided with rising geopolitical risks and sweeping tariff measures announced by US President Donald Trump, which unsettled broader financial markets and reduced appetite for risky assets.
BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview
Trade tensions and macro risks are driving sell-offs
Market volatility increased after the Supreme Court of the United States ruled that parts of previous tariff programs exceeded presidential authority. Shortly afterwards, Trump introduced new global tariffs of up to 15% among individual trading powers, raising concerns about slower global growth and persistent inflation.
Escalating tensions between the United States and Iran added another layer of uncertainty, driving investors toward traditional safe havens like gold. Crypto assets, which had previously benefited from a “digital gold” narrative, instead behaved more like risky investments during the latest market stress.
Selling by large companies also contributed to the downward pressure, with increased transfers of whale portfolios to exchanges pointing to potential liquidation activity. Analysts noted that low liquidity and weak conviction among buyers amplified price swings.
Economic data and policy decisions in pictures
Investors are now keeping a close eye on the upcoming economic indicators. Data on consumer confidence, unemployment claims and producer price inflation figures are expected to shape expectations around interest rates. Recently inflation measurements The above predictions have diminished hopes for monetary easing by the Federal Reserve in the short term.
Meanwhile, the central bank is poised to inject roughly $14.6 billion into financial markets, a move that some analysts say could provide temporary support for speculative assets but is not equivalent to full stimulus.
Technology gains are also on the radar, especially Nvidia’s results, whose performance often influences sentiment in both the technology stocks and crypto markets.
Liquidations are increasing as fear dominates sentiment
Market data shows that more than $460 million in leveraged positions were wiped out during the latest decline, with long traders accounting for the majority of the losses. Institutional flows have also weakened, with exchange-traded crypto funds recording notable outflows.
Additional supply pressure emerged after mining firm Bitdeer sold all of its weekly output, while public commentary from industry figures including Michael Saylor suggested long-term optimism remains despite short-term weakness.
The Crypto Fear and Greed Index has entered extreme fear territory, reflecting cautious positioning in the market. Until macroeconomic clarity improves, analysts expect volatility to remain high as traders weigh policy risks against longer-term adoption trends.
Cover image of ChatGPT, BTCUSD chart from Tradingview
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