Bitcoin drops below $63,000! Tariffs and geopolitical tensions heat up, triggering a sell-off, with a 27% decline so far this year.

Amid rising global tariff tensions and escalating Middle East geopolitical risks, the crypto market is once again under pressure. Bitcoin (BTC) plunged over 5% on Tuesday, breaking below the $63,000 level, with a low of $62,964.64, indicating a rapid increase in risk-averse sentiment.

Market analysis suggests that this decline is not a systemic crisis unique to cryptocurrencies but rather a typical “risk sentiment reset.” However, with tightening liquidity conditions and increasing global policy variables, the high sensitivity of crypto assets to macro changes has once again become a focus.

Tariff and Middle East tensions escalate, Bitcoin drops below $63,000

BTC briefly dipped to $62,964.64 on Tuesday, a single-day decline of over 5%, breaking the $63,000 psychological level. This decline coincides with ongoing market digestion of rising tariff conflicts and geopolitical risks, with investors clearly reducing exposure to risk assets.

Christopher Hamilton, Head of Investment Solutions for Invesco Asia Pacific (excluding Japan), said that this Bitcoin decline “does not seem to be caused by a crypto-specific shock but rather a typical risk sentiment reset.” He further pointed out that it is more likely a “tactical de-risking” rather than a structural withdrawal of funds. In other words, the market is adjusting positions rather than fundamentally dismissing the long-term value of crypto assets.

Trump to decide on Iran military action within 10 days, markets remain tense

On the macro front, U.S. President Trump stated last week that he will decide “within about 10 days” whether to launch military strikes against Iran if the country refuses a new nuclear deal. This statement quickly heightened concerns over escalating Middle East tensions.

Subsequently, the U.S. continued deploying military assets to the Middle East, further increasing geopolitical risks. Against the backdrop of already strained trade policies and tariff issues, this new military uncertainty undoubtedly amplifies volatility in capital markets.

When financial markets begin to worry that trade policies may tighten overall financial conditions, risk assets tend to be the first to suffer, and Bitcoin again demonstrates its high sensitivity to macro liquidity.

Bitcoin has halved from its $125,000 high, down 27% year-to-date

In fact, Bitcoin’s correction did not start this week. Since surpassing the $125,000 high in October last year, the market has experienced significant selling pressure. The decline has continued into this year, with a total drop of 27%; compared to the October high, it has fallen by 50%.

This months-long correction indicates that the market is cooling from previously extreme optimism. Some investors have shifted funds into cash or other more defensive assets to hedge against potential policy and geopolitical shocks.

Billy Leung, Investment Strategist at Global X Australia, said, “More importantly, Bitcoin still heavily depends on the global liquidity environment. If the market believes trade policies are tightening financial conditions, the crypto market will be the first to feel the impact.”

This highlights the core issue — although some supporters view Bitcoin as “digital gold,” in actual market behavior, it still behaves more like a high-volatility risk asset.

Gold and Ethereum decline in tandem, safe-haven assets do not fully benefit

Notably, traditional safe-haven asset gold also failed to fully escape the downturn. Spot gold fell about 1% on Tuesday, trading at $5,171.87 per ounce. This suggests that even amid geopolitical tensions, the market experienced some profit-taking or liquidity pressures.

Meanwhile, the second-largest cryptocurrency, ETH, also declined over 1%, trading at $1,831.52. This indicates that the overall crypto market sentiment remains weak, rather than being driven by a single coin event.

Macro liquidity becomes a key variable, crypto enters a sensitive period

Overall, the current decline in Bitcoin is not driven by specific on-chain risks or regulatory surprises but is clearly influenced by macroeconomic factors. Uncertainty around tariff policies, Middle East military risks, and the potential tightening of global liquidity conditions are collectively shaping a shift in market risk appetite.

In the short term, whether Bitcoin can regain and hold above $63,000 will depend on whether geopolitical risks ease and market expectations for financial conditions improve. If global risk sentiment continues to decline, the crypto market may still face increased volatility.

However, if this wave is indeed a “tactical de-risking” rather than a structural withdrawal of funds, then once macro conditions clarify, capital could flow back into the market.

This article Bitcoin falls below $63,000! Tariff and geopolitical tensions trigger sell-offs, down 27% this year, first published on Chain News ABMedia.