The world’s largest cryptocurrency was last trading at $64,816, down 5.3%, while ether, the second-largest digital token, declined nearly 6% to $1,865, News.Az reports, citing CNBC.
The sell-off came even as Asian equities opened higher, highlighting crypto’s divergence from traditional stock markets during periods of geopolitical and trade uncertainty.
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Bitcoin has now fallen 26% year-to-date and is down more than 47% from its October high above $125,000. The correction marks a sharp reversal after a strong rally in late 2025.
Jeff Mei, chief operating officer at BTSE, said investors appear to be reducing exposure to crypto assets amid fears that higher tariffs could trigger a broader market downturn. He also cited concerns over a significant U.S. military buildup in the Middle East, as Trump signaled he would decide within 10 days whether to launch strikes against Iran.
Market analysts suggest the downturn may reflect deeper structural weakness rather than a single headline event. Markus Thielen, head of research at 10x Research, said the slide is consistent with a bear-market phase marked by thin liquidity and low conviction among investors. He sees potential downside toward $50,000 before a more sustainable bottom forms.
Meanwhile, safe-haven demand pushed spot gold prices about 1.5% higher Monday — underscoring a widening gap between bitcoin and traditional defensive assets. Bitcoin has often been described as “digital gold,” including by Federal Reserve Chair Jerome Powell, but recent price action suggests investors are favoring physical bullion during heightened uncertainty.
Earlier this month, Bitwise Chief Investment Officer Matt Hougan attributed bitcoin’s decline to the crypto market’s historical four-year cycle, arguing the current retracement resembles previous downturns. Bitcoin previously hit a one-year low of $63,119 on Feb. 5.
With trade policy, geopolitical tensions, and macroeconomic uncertainty converging, volatility in crypto markets appears set to continue in the near term.
