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Bitcoin, the largest digital asset by market capitalization, dropped to $64,250 in early trading, marking its first move below $65,000 since Feb. 6, as broader market uncertainty pushed investors away from risk-sensitive assets.
The cryptocurrency later attempted to recover, trading near $65,500 as of 06.45 GMT. Despite the rebound, the digital asset remained under pressure, posting a daily loss of nearly 3%.
Other cryptocurrencies also declined, with Ethereum, the second-largest digital asset, falling 5% to $1,878.09 and XRP dropping 3.7% to $1.36, while the overall crypto market lost more than 3%.
Market sentiment weakened after U.S. President Donald Trump raised import tariffs to 15% on Saturday, following a Supreme Court rejection tied to trade measures, fueling concerns about escalating trade tensions and broader economic fallout. The measures include numerous carve-outs and are legally limited to remaining in effect for 150 days.
Uncertainty is increasing due to possible tax refunds, the implementation of additional tariffs, and the risk of retaliatory actions by other countries, contributing to selling pressure across cryptocurrency markets, which investors typically view as higher-risk assets.
Asian equity markets reacted positively to the Supreme Court’s decision, which investors viewed as favorable for export-driven economies such as China and India, with technology stocks leading the gains. Hong Kong’s benchmark index, Hang Seng, climbed more than 2%, while markets in Tokyo and Shanghai remained closed for public holidays.
However, Western stocks came under pressure after the European Commission sought clarification from Washington following the Supreme Court’s tariff ruling and President Donald Trump’s decision to impose new import duties. The Commission said the current situation does not support the "fair, balanced, and mutually beneficial" transatlantic trade and investment framework outlined in the EU-U.S. joint statement, stressing the need for predictability and legal certainty for European companies and exporters.
U.S. and European stock futures moved lower at the start of the day, with S&P 500 futures falling by 0.5% and the Stoxx 600 futures declining by 0.3%.
Precious metals saw increased demand, with gold rising 0.8% to around $5,150 and silver gaining 2% to $86.4 per ounce, as the U.S. Dollar Index declined 0.3% to 97.5 amid tariff uncertainty and tensions with Iran. Among other precious metals, palladium fell about 0.3% to $1,750 per ounce, while platinum edged up 0.2% to trade near $2,165.
Oil prices fell about 1%, with Brent and WTI crude retreating to $70.5 and $65.6 per barrel, respectively, as optimism over a potential Iran nuclear deal eased last week’s fears of a possible U.S. military strike after Trump warned that "bad things happen" and deployed additional warships and fighter jets to the Middle East.
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