Bitcoin experienced a sharp decline in early Asian trading on Monday, driven by renewed concerns surrounding US tariffs. The original digital asset fell as much as 4.8 per cent to approximately $US64,300, marking its lowest point since February 6. Other cryptocurrencies also suffered, with Ether, the second-largest token, dropping by 5.2 per cent.
The downturn follows comments from US officials on Sunday affirming that existing trade agreements remain valid, despite a Supreme Court decision limiting President Trump’s ability to impose tariffs using emergency powers. Trump had previously announced on social media his intention to raise the global tariff from 10 per cent to 15 per cent, contributing to increased economic instability. This announcement also led to a drop in the dollar and US stock futures during early trading hours in Asia.
According to Caroline Mauron, co-founder of Orbit Markets, the cryptocurrency market remains vulnerable, with participants closely monitoring the $US60,000 support level. She noted that prevailing macro uncertainties, including geopolitical tensions in Iran and fluctuations in US tariff policies, are impacting the market and could lead to further testing of this critical level.
Rachael Lucas, an analyst at BTC Markets, identified $US65,000 as a key support level for Bitcoin. She cautioned that a significant breach below this threshold could bring $US60,000 into play. Conversely, she added that for bullish sentiment to return, buyers would need to reclaim the $US70,000 level.