Bitcoin Slides Below $65,000 as Trump's New Tariff Rattles Markets

Gotrade News - Bitcoin briefly dipped below $65,000 on Monday (02/23) for the second time this month, dragged down by fresh uncertainty over U.S. tariff policy. The drop extends a brutal streak for digital assets that has been building since the start of 2026.

According to Bloomberg data, Bitcoin fell as much as 4.8% to around $64,300, its lowest level since February 6. Ethereum took an even harder hit at 5.2%, while XRP slipped 3.3% based on CoinDesk figures.

Key Takeaways

• Bitcoin is down 25% since the start of 2026, with its next critical support sitting at $60,000
• U.S.-listed spot Bitcoin ETFs have bled $3.8 billion over five consecutive weeks of net outflows
• Trump's new tariff authority under Section 122 only lasts 150 days and is vulnerable to legal challenges

The main trigger this time was President Donald Trump's announcement on Saturday (02/22) that he would raise his global tariff rate from 10% to 15%. The move came just a day after the U.S. Supreme Court struck down his use of emergency authority to impose tariffs.

Trump is now leaning on Section 122 of the 1974 Trade Act as the legal basis for the new duties. However, that provision only permits tariffs for 150 days unless Congress steps in to extend them.

Legal Uncertainty Weighs on Market Sentiment

Deutsche Bank strategist Jim Reid noted that Section 122 was originally designed as a temporary measure to address emergency balance-of-payments issues. He added that using it repeatedly would very likely trigger further legal challenges down the road.

The fallout was not limited to crypto. S&P 500 futures dropped 0.8% and Nasdaq 100 futures slid 1% in early Monday trading.

Caroline Mauron, co-founder of Orbit Markets, described the crypto market as fragile right now. She pointed to a cocktail of macro headwinds, from geopolitical tensions with Iran to the constant back-and-forth on U.S. tariffs, as key factors keeping the pressure on.

Since the start of 2026, Bitcoin has shed 25% and wiped out all the gains it made after Trump's election win in November 2024. The record high above $126,000 hit last October now feels like a distant memory, with over $2 trillion in total crypto market cap evaporating since then.

ETF Outflows and a Missing Narrative

U.S.-listed spot Bitcoin ETFs have now posted net outflows for five consecutive weeks. Bloomberg data shows investors pulled a combined $3.8 billion during that stretch.

In just the past 24 hours, the crypto market lost another $100 billion according to CoinGecko. Data from derivatives exchange Deribit showed that downside protection is heavily concentrated around the $60,000 level.

Robin Singh, CEO of crypto tax platform Koinly, said Bitcoin is essentially starving for a fresh narrative to drive prices higher. He noted that recent optimism around the U.S. Clarity Act barely moved the needle, suggesting that catalyst alone is not enough.

Meanwhile, gold moved in the opposite direction on the same day. According to Barron's, gold futures climbed 1.6%, reinforcing the growing sense that Bitcoin still cannot convincingly play the safe-haven role.

Rachael Lucas, an analyst at BTC Markets, flagged $65,000 as a key support level for Bitcoin. A clean break below that puts $60,000 squarely in play, and any real recovery would require bulls to reclaim $70,000 first.

This environment spells trouble for companies with heavy Bitcoin exposure like Strategy Inc and MARA Holdings, as well as platforms such as Coinbase. Until the tariff fog clears up, risk assets including crypto are likely to stay under pressure.

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Reference:

• Bloomberg, Bitcoin Falls Below $65,000 in Latest Bout of Tariff Uncertainty. Accessed on February 23, 2026

• Barrons, Bitcoin Falls Below $65,000. Why Tariff Turmoil Is Crushing Cryptos.. Accessed on February 23, 2026

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