Bitcoin Falls Over 3% as Trump Tariff Moves Raise Uncertainty

Bitcoin has tumbled more than 3% in early trading, dipping below $65,000 amid heightened uncertainty from President Trump’s aggressive tariff escalation following a Supreme Court ruling.[2][4] As of Monday morning, the cryptocurrency traded around $64,882, down 4.6% in the last 24 hours, reflecting broader risk-off sentiment tied to U.S. trade policy shifts.[2]

The Supreme Court Ruling and Trump’s Swift Response

The drama unfolded on February 20, 2026, when the U.S. Supreme Court ruled 6-3 that Trump’s previous tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), were illegal.[1] This decision struck down a major component of his trade agenda, initially sparking a brief market relief rally.

Trump responded within hours, signing an executive order for a new 10% global tariff on imports under Section 122 of the Trade Act of 1974.[1] By Saturday, February 21, he raised it to 15%—the maximum allowed—effective immediately on goods from countries he accused of “ripping off” the U.S. for decades.[1][3] The move targets nearly all imports for 150 days, pending further investigations under Sections 232 and 301.[1]

Bitcoin’s price action mirrored the volatility. It dipped to $66,500 on the Supreme Court headline, bounced to $68,000, then oscillated in a tight $66,500-$68,000 range over the weekend.[1] Early Monday Asian trading saw a sharper sell-off, with BTC sliding as low as $64,384—levels not seen since early February’s brief plunge near $60,000.[2]

This table highlights the compressed trading range that gave way to Monday’s downside break.[1][2]

Why Bitcoin is Feeling the Heat Now

Several factors amplified the drop. On-chain data from CryptoQuant revealed surging whale activity, with large holders—early adopters, institutions, and funds—transferring coins to exchanges, a classic precursor to selling.[2] The exchange whale ratio climbed, exerting outsized short-term pressure on prices.[2]

Trump’s tariff hike unsettled markets by raising fears of slowed global growth and tighter liquidity—conditions that historically batter risk assets like cryptocurrencies.[2] Equities felt it too: U.S. futures dropped, the dollar weakened, and Asian shares were mixed.[4][5] Traditional markets had shown resilience initially—S&P 500 up 0.69%, Nasdaq +0.9% on Friday—but Monday’s risk-off mood spread.[1]

Compounding this, U.S. economic data painted a gloomy picture. Q4 GDP grew at just 1.4% annualized, signaling a slowdown, while the personal consumption expenditures (PCE) price index held at 2.9% year-on-year—sticky inflation complicating Federal Reserve rate cut hopes.[2] Broader macro headwinds, including elevated 3% PCE inflation and potential Iran escalation, loom large.[1]

Bitcoin entered this event already beaten down. It had fallen 29% from October 2025 highs, hitting $60,001 earlier in February, with the Fear and Greed Index at extreme fear (9/100).[1] Spot Bitcoin ETF flows stabilized after heavy outflows—$133 million in one day on February 19—dropping assets under management from $125 billion to $94 billion.[1] Sellers appeared “exhausted,” per VanEck research, muting the impact of fresh bad news.[1]

Ethereum and XRP also slid nearly 6% each, underscoring sector-wide pressure.[2]

Bitcoin’s Growing Tariff Resilience—or Breaking Point?

Crypto markets have faced repeated Trump trade shocks. April 2025’s “Liberation Day” tariffs triggered an +8% relief rally initially but overall pain.[1][3] January 2026 threats to Greenland and Europe caused -2% dips.[1] The latest event? Just -1% to flat over the weekend, before Monday’s tumble.[1]

This diminishing reaction suggests markets are pricing in persistent friction, developing “antibodies” against tariff headlines.[1] The net tariff picture even improved for some countries compared to IEEPA levels, and BTC’s oversold state left little room for more fear.[1] Yet Monday’s 3%+ drop below $65,000 signals the range ($66,000-$68,000) has cracked, potentially overwhelmed by macro stress.[1][2]

What Traders Should Watch Next

Key levels: A break above $68,500 with volume could confirm tariff overhang absorption, targeting higher recoveries.[1] Below $66,000, broader headwinds dominate, risking retests of $60,000 lows.[1]

Upcoming catalysts include the 150-day tariff expiration, Section 232/301 probes, and refund litigation.[1] ETF flows, Fed policy signals amid 1.4% GDP and 3% inflation, and whale movements remain critical.[1][2] Regulatory scrutiny on crypto could intensify if tariffs fuel deficit concerns and rising Treasury yields.[4]

Broader Implications for Crypto and Markets

While Bitcoin showed relative firmness Saturday—up nearly 2% to $68,273 post-announcement—the weekend stability eroded Monday.[3] Ethereum held at ~$1,987 briefly but joined the slide.[3] This episode underscores crypto’s sensitivity to U.S. policy pivots, even as it decouples somewhat from prior shocks.[1][3]

For investors, the tariff saga highlights Bitcoin’s maturation: less knee-jerk volatility, but still vulnerable to global liquidity squeezes and whale dumps.[2] As trade wars simmer, positioning for breakouts—or breakdowns—will define the near term. Stay vigilant on macro data and on-chain metrics for the next move.

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Original source: CNBC Business – Bitcoin falls over 3% as Trump tariff moves raise uncertainty