Bitcoin plunges 5% on 'Trump tariff shock,' falls below $65,000

As President of the United States (POTUS) Donald John Trump announced a plan to raise global tariffs to 15%, the price of Bitcoin tumbled more than 5%, dropping below the $65,000 level.
On the 23rd local time, international media including Consumer News and Business Channel (CNBC) reported that, in sharp contrast to early gains in major Asian stock markets, the cryptocurrency market was hit directly by tariff-related uncertainty and showed a decoupling from broader markets.
Around noon Korea time, Bitcoin was trading at $64,800 in Singapore.
After breaking above $125,000 last October, Bitcoin entered a steep sell-off. The downward trend has continued into the new year without a pause.
So far this year alone, its value has fallen 26%, and it is down more than 47% from the peak reached in October last year.
On the same day, Ether (ETH), the second-largest cryptocurrency by market capitalization after Bitcoin, also dropped 5.2%.
According to CoinGecko, more than $100 billion (about 144 trillion won) in cryptocurrency market capitalization evaporated over the past 24 hours.
Trump stated on the 21st that, in response to a Supreme Court of the United States (SCOTUS) ruling invalidating reciprocal tariffs, he would raise global tariffs from 10% to 15% under Section 122 of the Trade Act of 1974.
Jeff Mei, chief operating officer (COO) of global blockchain technology company BTSE, analyzed, "The sudden tariff hike appears to be triggering a wave of panic selling by investors who had anticipated further market declines."
Mei added that investors are also worried that the large deployment of U.S. military forces around Iran could escalate into a wider regional conflict and disrupt global trade flows.
Within the cryptocurrency market, some voices argue that the latest crash reflects structural problems rather than a single negative catalyst.
Markus Thielen, head of research at 10x Research, warned, "Low liquidity and a lack of conviction in the market are the fundamental causes," and said that, following a typical bear-market pattern tied to the U.S. midterm elections, Bitcoin could fall further toward the $50,000 level.
Unlike Bitcoin, which had been dubbed "digital gold" by figures including Jerome Hayden Powell, chair of the Federal Reserve System (the Fed), the spot price of gold rose 1.5% on the day, underscoring its appeal as a safe-haven asset.
Matt Hougan, chief investment officer (CIO) at Bitwise Asset Management, interpreted the recent Bitcoin decline as a correction consistent with the cryptocurrency market’s characteristic "four-year cycle" theory. He noted that investors are rotating funds into gold and artificial intelligence (AI)-related stocks, and assessed that concerns over Kevin Warsh, the Fed chair nominee, along with "quantum risk" and other factors, are interacting to pressure the market.
jjyoon@fnnews.com Yoon Jae-joon Reporter