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Bitcoin Slumps to $64K Amid Tariff-Driven Sell-Off

Bitcoin drops 50% on macro pressures and ETF outflows, but structural cycle remains intact.

  • Bitcoin extended its slide to $63,822, down 50% from its October 2025 all-time high, driven by macro-economic pressures and persistent ETF outflows.
  • Analysts attribute the drop to a combination of tariff announcements, negative rate expectations, and high market leverage, not a broken market cycle.
  • While a further correction toward $55,000 is possible, experts see an intact structural foundation for Bitcoin, with the market potentially entering a base-building phase.

Bitcoin plunged to $63,822 on Tuesday, extending a sharp weekly decline as investors grappled with new U.S. tariffs and a “higher-for-longer” interest rate environment. This drop marks a 50% correction from the cryptocurrency’s all-time high of $126,080 reached just five months ago, according to CoinGecko data.

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Analysts stress this selloff stems from compounding macro shocks landing on a highly leveraged market. “Bitcoin’s drop below $64,000 was not a single event,” said Rachael Lucas of BTC Markets, who pointed to President Trump’s decision on global tariffs as the catalyst.

Consequently, Bitcoin Markets continued trading as a risk asset, with capital rotating toward traditional safe havens. The pressure intensified as the Federal Reserve’s inaction pushed the odds of no rate cut to 96%, as shown by the CME’s FedWatch Tool.

Meanwhile, digital asset investment products logged their fifth consecutive week of outflows, totaling roughly $4 billion. Nick Ruck of LVRG Research confirmed the price fall reflects macro pressures and “persistent negative ETF flows.”

However, experts maintain that Bitcoin’s fundamental four-year cycle is not broken. Lucas noted that if the cycle holds, 2026 represents a correction and base-building phase before the next accumulation period.

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Looking ahead, the near-term outlook remains cautious, with the potential for prices to test the realized price level near $55,000. Justin d’Anethan of Arctic Digital acknowledged that level is “definitely not out of reach” in the current environment.

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