Bitcoin falls 50% as Trump tariffs hit markets; analysts warn of further losses

Bitcoin fell sharply to $63,000, which is roughly 50% below its all-time high. Investors are worried about global trade tensions and changing US economic policies. The slide comes after the US Supreme Court struck down certain tariffs linked to President Donald Trump. Soon after, he announced a 10% global tariff, later raised to 15%. This move has unsettled financial markets and added to investor caution. The cryptocurrency is down 24% this year. It is also on track for its fifth straight month of losses. The decline is raising questions about whether Bitcoin can still be a safe place to store value.

Many investors are questioning if Bitcoin can protect wealth during market stress. According to Bespoke Investment Group, some investors doubt that Bitcoin can still act as a reliable store of value. Unlike gold or government bonds, Bitcoin’s price moves sharply when global or economic events create uncertainty. Experts say this makes investors cautious about holding large amounts of the cryptocurrency during turbulent times.

The current downturn is not the same as the 2022 crypto crash. That year, the market saw many big lenders and trading firms fail. Forced sales and bankruptcies pushed Bitcoin down about 77%. This year, there have been fewer institutional failures. The largest so far is Blockfills, a mid-sized crypto broker that stopped deposits and withdrawals. Analysts say Blockfills is much smaller than the firms that collapsed in 2022, and its problems have not caused a wider market crash.
Analysts' say
Some analysts warn that Bitcoin could fall further, possibly toward $50,000, before finding support. Standard Chartered recently lowered its year-end target from $150,000 to $100,000. Analysts point out that no new US Federal Reserve rate cuts are expected before Kevin Warsh becomes chair in June, which limits the chances of a short-term rally. Exchange-Traded Fund investors may also sell during this weakness instead of buying, adding pressure to the market. Still, experts say the market structure is stronger than in 2022, which may prevent a severe crash.