The global cryptocurrency market faced a significant downturn during Asian trading hours as Bitcoin slipped below the $63,000 mark, extending a period of overnight weakness. Currently trading around $63,270.71, the leading digital asset by market capitalization has seen its value erode by nearly 7% over the past week. This slide marks a return to price levels last witnessed in early February, when the market flirted with the $60,000 threshold, reflecting a sharp shift in investor sentiment that has soured across the broader financial landscape.
The current sell-off is being attributed to a combination of geopolitical friction and macroeconomic shifts. Sentiment turned bearish following President Donald Trump’s announcement of a temporary 15% tariff on imports, an escalation from the 10% rate previously proposed after a Supreme Court ruling impacted his initial trade strategy. This move has mirrored the market volatility seen in April 2025, with Matt Howells-Barby, vice president at Kraken and host of Trading Spaces, noting that renewed tariff-related uncertainty and ratcheting geopolitical tensions are weighing heavily on Bitcoin in the short term, CoinDesk said in a report.
Further pressure is coming from the equity markets, specifically within the technology sector. U.S. stocks fell on Monday as investors began offloading shares in companies perceived to be falling behind in the artificial intelligence revolution. This “AI jitters” phenomenon, combined with the new trade barriers, has triggered a broader retreat from risk assets. Analysts are now closely monitoring the $60,000 support level, which is considered a critical line of defense for bullish investors. Experts warn that if this psychological floor fails to hold, the market could see a further slide into the mid-to-low $50,000 range.
From a technical perspective, historical data suggests that Bitcoin may not have reached its local bottom. Previous major bear markets, such as those in 2018 and 2022, typically concluded only after a “bear cross,” which occurs when the 50-week moving average price crosses below the 100-week average. Currently, the market is far from this signal, as the 50-week average remains positioned well above the 100-week mark. While these lagging indicators confirm trends rather than predict them, further capitulation toward $50,000 or lower might occur before the long-term averages signal a definitive trend reversal.
