Bitcoin slipped under the $65,000 level as escalating U.S. tariff plans collided with an already fragile macro backdrop. The move underscored that crypto remains highly reactive to trade-policy shocks when broader risk appetite is thin.
Price action accelerated into the Asian session, with Bitcoin down roughly 4.5%–4.8% on the day and trading in a reported $64,300–$64,970 range. Market reports also pointed to roughly $100 billion in market-cap erosion, more than $300 million in leveraged liquidations, and the Crypto Fear & Greed Index sliding into Extreme Fear.
Tariff headlines became the catalyst for a risk-off unwind
The immediate catalyst was a rapid shift in tariff messaging following a U.S. Supreme Court decision that limited emergency tariff powers. Reports said President Donald Trump floated a 10% global tariff on Feb. 20, 2026 and then raised it to 15% on Feb. 21 under Section 122 of the Trade Act of 1974.
That two-step escalation landed as markets were already positioned defensively, which helped turn headlines into mechanical deleveraging. The result was broad weakness across major tokens, with Ethereum and XRP declining alongside Bitcoin as forced exits amplified volatility.
What traders and institutions are watching next
The tariff-driven drop did not occur in a vacuum, coming after a stretch of macroeconomic, corporate, and geopolitical stress that had left markets vulnerable to a directional shock. With sentiment already brittle, liquidation cascades and abrupt positioning cuts can slow stabilization even after the news cycle cools.
Bitcoin could revisit $60,000 if selling persists, putting the next leg of price discovery on a tight set of technical and flow-driven checkpoints. Near-term focus is likely to center on whether tariff rhetoric is sustained, how policymakers and markets respond, and whether leveraged and institutional flows stabilize around the $60,000 floor.