Bitcoin Plummets as New Tariff Announcement Sparks Market Panic

Bitcoin hits multi-month low as Trump's 15% tariff proposal sparks extreme market fear, causing $100B crypto market cap loss and a shift to gold.

The price of Bitcoin tumbled over the weekend, hitting a multi-month low of $64,300. The catalyst was a significant political development: following a Supreme Court ruling, former U.S. President Donald Trump proposed new global tariffs of 15 percent. This announcement sent market uncertainty soaring to extreme levels, triggering a sharp sell-off across digital assets.

A Wave of Forced Selling and Strategic Shifts

The market's response was swift and severe. Approximately $100 billion in value was erased from the total cryptocurrency market capitalization within a single day. This volatility forced the liquidation of positions held by more than 130,000 traders. The total volume of these forced sales exceeded $450 million, with the majority being long positions.

Amid the downturn, notable shifts in holder behavior emerged. Large-scale investors moved significant holdings onto exchanges. In a particularly drastic move, mining firm Bitdeer completely divested its Bitcoin treasury, selling all 1,132.9 units. The company, which has held no Bitcoin of its own since February 20, is now channeling capital into data centers and artificial intelligence projects.

Not all market participants retreated, however. Strategy, formerly known as MicroStrategy, capitalized on the lower prices, purchasing an additional 592 Bitcoin for nearly $40 million.

Fear Grips Crypto as Gold Shines

The prevailing sentiment is captured by the Crypto Fear & Greed Index, which registered readings between 5 and 14—a clear signal of "extreme fear" among investors. Year-to-date, Bitcoin's losses now total 24 percent. The decline has been even steeper for other major cryptocurrencies, with Ethereum shedding 35 percent and Solana dropping 42 percent over a three-month period.

This flight from digital assets coincided with a surge in traditional safe-haven demand. The price of gold climbed nearly 2 percent on Monday, reaching over $5,179 per ounce. This represents a substantial 79 percent gain compared to the same period last year.

Market observers have identified a critical support zone for Bitcoin between $60,000 and $62,000, where a concentration of options hedging is positioned. Analysts now point to the anticipated passage of the CLARITY Act in April as the next potential catalyst for the market.