Bitcoin experienced a notable decline this week, dipping below the $65,000 mark as investors grappled with increasing tariff uncertainties and geopolitical tensions. The cryptocurrency traded as low as $64,830 early Monday, continuing a downward trend that has seen it slide nearly 5% since the previous day. Over the weekend, Bitcoin reached a low of $64,324, marking its lowest point since early February 2023 when it fell to $60,062. At 9:40 a.m. ET, the digital currency was trading down more than 2% at $65,836.68.
This recent downturn is attributed to a broader investor retreat from risk-oriented assets amid rising global uncertainties. Last week, tensions escalated when U.S. President Donald Trump indicated that he would make a decision regarding potential military action against Iran within the next ten days, following the nation’s defiance over a new nuclear agreement. Concurrently, the U.S. military has been repositioning forces in the Middle East, contributing to a climate of apprehension.
Compounding these geopolitical issues, President Trump also announced on Saturday that he would raise retaliatory tariffs against numerous foreign trading partners to 15%, effective immediately. This announcement came just a day after the Supreme Court overturned previous trade taxes.
Since the beginning of the year, Bitcoin has experienced a significant decline of 24%, largely fueled by various macroeconomic threats. In stark contrast, safer investment vehicles, such as precious metals, have seen substantial gains over the same period. Gold prices have surged approximately 20% year to date, while silver has risen by 23%, highlighting the market’s flight to safety amid rising uncertainties.
