Bitcoin s Decline Amid Geoeconomic Uncertainty

Bitcoin experienced a significant drop of over 2,500 on Sunday night, falling below 65,000. This decline was attributed to investor adjustments in response to geoeconomic and trade uncertainties stemming from a new global 15 tariff regime imposed by President Donald Trump and the potential for military action against Iran.
As Asian markets opened, Bitcoin lost more than 5 in the past 24 hours, reaching a low of 64,409 on Bitstamp. This drop resulted in the liquidation of over 200 million in long positions as investors anticipated a consolidation rather than a dip. The 65,000 mark has now become a resistance level as the cryptocurrency market enters a bearish period.
Analysts pointed to Trump s new tariff regime, set to take effect on February 24, as a key factor in this decline. Countries with existing bilateral trade agreements with the U.S. are reacting to this uncertainty, with reports suggesting that European legislators may postpone ratifying the tariff deal due to doubts about U.S. compliance.
Clarity and legal certainty are required before any further action can be taken,
stated Bernd Lange, a lawmaker. He emphasized the need for a thorough legal assessment and clear commitments from the United States before proceeding.
India has also reportedly delayed its tariff talks with Washington, as previous negotiations would result in higher tariffs than those now being applied by the Trump Administration. This situation adds to the overall market uncertainty.
Additionally, the possibility of a U.S. strike on Iran is weighing on the markets. Former CIA officer John Kiriakou claimed that the U.S. has already decided to strike Iran, despite ongoing negotiations. A conflict in Iran could disrupt global oil supplies, particularly through the Strait of Hormuz, which is crucial for crude oil transport.
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In summary, Bitcoin s recent decline is primarily due to geopolitical tensions and trade uncertainties. The introduction of new tariffs and the potential for military action are contributing to market instability as investors adjust their positions.