Bitcoin declined more than 5% on Tuesday, slipping below the $63,000 level as investors retreated from risk assets. Prices briefly traded as low as $62,964.64, underscoring the move away from risk assets amid unfolding tensions. The move lower in bitcoin looks less like a crypto-specific shock and more like a classic risk-sentiment reset.
The plunge is likely a reflection of a “tactical de-risking” rather than a structural exit. Bitcoin has experienced a sharp sell-off since October last year when it crossed $125,000, with the downturn carrying into the new year. The world’s largest cryptocurrency is down 27% so far this year and has lost 50% since the October high.
The bigger point is that Bitcoin remains highly sensitive to global liquidity conditions. If markets interpret trade policy as tightening financial conditions, crypto will feel that first. Ether, the second-largest cryptocurrency, slipped more than 1% to around $1,831.52.
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