NEW YORK — Bitcoin fell more than 5% on Tuesday, sliding to a multi-week low of $62,700 as digital assets bore the brunt of a massive global rotation away from risk. The sell-off follows a weekend of high-stakes policy shifts in Washington, where President Trump announced a hike in the proposed global tariff rate to 15%, utilizing Section 122 of the 1974 Trade Act to bypass a recent Supreme Court blockade.
The move has rattled a crypto market already struggling with a “liquidity desert.” Investors, once hopeful that Bitcoin would serve as a “digital gold” hedge against inflation, are instead liquidating positions in favor of traditional safe havens. Gold futures climbed 1.6% during the same window, reinforcing the narrative that institutional “smart money” is opting for tangible assets amidst the brewing trade war.
The “Surcharge” Shockwave
The primary catalyst for Tuesday’s tumble was the transition from specific industry tariffs to a broader import surcharge. By invoking Section 122, the administration has signaled a willingness to pursue a “balance-of-payments” strategy that economists warn could be inflationary.
- The Support Floor: Analysts at BTC Markets and Presto Research have flagged $60,000 as the critical “make-or-break” support level. A sustained break below this psychological barrier could trigger a fresh wave of liquidations, potentially targeting the $50,000 range.
- Institutional Bleed: U.S.-listed spot Bitcoin ETFs have recorded their fifth consecutive week of net outflows, totaling roughly $4.5 billion year-to-date. Major hedge funds, including DE Shaw and Farallon Capital, have reportedly slashed their crypto exposure by nearly 30% in response to the shifting macro climate.
Geopolitics and the Safe-Haven Mirage
Beyond trade policy, heightened military tensions in the Middle East have added a “geopolitical premium” to traditional commodities while weighing on high-beta assets like crypto.
As the “tariff fog” thickens, Bitcoin’s inability to reclaim the $70,000 resistance level suggests a period of prolonged consolidation. For retail and institutional holders alike, the focus has shifted from “pro-crypto” policy optimism to a stark assessment of how digital assets survive a synchronized sell-off in Treasuries and equities.
Bitcoin Cryptocurrencyv Picture by Mohamedhassan
