Bitcoin plunged below the $65,000 mark during Monday’s Asian trading session, retreating to levels last seen in early February. The decline comes amid increased selling activity from large holders—commonly known as “whales”—and a broader wave of risk aversion driven by renewed uncertainty surrounding U.S. trade policy.
The world’s largest cryptocurrency fell 4.6% to $64,882.1 as of 22:37 ET (10:37 a.m. Vietnam time), after touching an intraday low of $64,384.2 over the past 24 hours. The move highlights the growing pressure on digital assets from both internal market dynamics and macroeconomic headwinds.
One of the key drivers behind this latest correction is the noticeable uptick in whale activity. Whales—entities holding substantial amounts of Bitcoin, including early adopters, institutional investors, and crypto funds—can significantly influence short-term price movements.
According to on-chain data from CryptoQuant, the ratio of whale inflows to exchanges has increased in recent days. Large holders have been transferring Bitcoin from cold storage to trading platforms—an action typically interpreted as preparation for selling.
Due to the sheer size of their holdings, even partial liquidations by whales can create considerable supply pressure. In periods of fragile market sentiment, such activity often triggers broader sell-offs as retail traders react preemptively.
Historically, spikes in exchange inflows from major wallets have preceded heightened volatility, particularly when accompanied by weakening macroeconomic conditions.
Beyond on-chain signals, macroeconomic uncertainty is amplifying downside pressure. Recent developments in U.S. trade policy have unsettled global financial markets.
Last week, the U.S. Supreme Court rejected certain elements of a previous tariff program introduced by former President Donald Trump. Shortly thereafter, Trump announced a new global tariff plan imposing a 10% levy on imports for 150 days, later raising the rate to 15%—the maximum permitted under the relevant statute.
The escalation in tariffs has revived fears of slowing global trade and weaker economic growth. During Monday’s Asian session, equities and other risk-sensitive assets declined sharply.
Cryptocurrencies, often viewed as high-beta assets dependent on liquidity and speculative capital flows, were not spared. As uncertainty grows, investors typically reduce exposure to volatile assets and rotate into safer alternatives.
Investor sentiment was already fragile following the release of key U.S. economic data last Friday.
The U.S. economy expanded at an annualized rate of 1.4% in the fourth quarter, signaling a slowdown in growth momentum. Meanwhile, the Personal Consumption Expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge—remained elevated at 2.9% year-over-year.
The combination of slowing growth and sticky inflation presents a challenging environment for policymakers. Expectations for imminent interest rate cuts by the Federal Reserve have consequently diminished.
For cryptocurrency markets, prolonged higher interest rates imply tighter financial conditions and less abundant liquidity—factors that typically weigh on speculative assets like Bitcoin.
The downturn extended beyond Bitcoin, reflecting broad-based weakness across the digital asset market:
Ethereum fell nearly 6%.
XRP also declined by around 6%.
The synchronized pullback suggests systemic risk-off positioning rather than isolated technical corrections.
With Bitcoin now trading below $65,000, much of the recovery momentum built since early February has been erased. At that time, prices briefly dipped close to $60,000 before staging a rebound.
Technical analysts point to the $64,000–$60,000 zone as a critical near-term support range. However, if macroeconomic uncertainty intensifies and risk appetite continues to deteriorate, further downside cannot be ruled out.
At present, Bitcoin is navigating a convergence of three primary pressures:
Increased whale selling activity, as indicated by on-chain exchange inflows.
Escalating global trade tensions following renewed U.S. tariff measures.
A prolonged higher-rate environment, driven by persistent inflation and slower economic growth.
Until greater clarity emerges regarding U.S. monetary and trade policy, volatility is likely to remain elevated.
Bitcoin’s drop below $65,000 reflects more than a routine technical pullback. It underscores the interconnected nature of cryptocurrency markets and the broader global macroeconomic landscape.
Whale selling, disappointing economic data, and renewed trade tensions have combined to create a distinctly risk-off environment. Investors will be closely monitoring on-chain metrics, Federal Reserve policy signals, and further developments in U.S. trade policy to assess whether Bitcoin can stabilize—or if additional downside lies ahead.
In the current climate, caution appears to be the dominant market sentiment.
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