Tariff uncertainty and rising geopolitical tensions drive shift toward gold and safe havens
Bitcoin dropped sharply on Monday, falling below the $65,000 level as investors reacted to escalating geopolitical tensions and renewed trade uncertainty. The world’s largest cryptocurrency traded as low as $64,830 early in the session, extending a nearly 5% slide that began over the weekend. At its lowest point, Bitcoin briefly touched $64,324, marking its weakest level in more than two weeks.
By mid-morning trading, Bitcoin was down more than 2% at approximately $65,800. The decline reflects broader investor caution as macroeconomic and geopolitical risks intensify. Since the beginning of the year, Bitcoin has fallen roughly 24%, underscoring the volatility facing risk-oriented assets.
A key driver behind the recent selloff is rising geopolitical tension in the Middle East. U.S. President Donald Trump recently indicated he could decide within the next 10 days whether to take military action against Iran amid stalled nuclear negotiations. The United States has reportedly increased its military positioning in the region, adding to investor anxiety.
At the same time, trade uncertainty has resurfaced. Trump announced plans to raise retaliatory tariffs to 15% on several foreign trading partners, effective immediately. The move follows a Supreme Court decision striking down previous trade taxes, creating confusion and renewed concerns about global trade stability.
As uncertainty grows, investors are rotating away from risk-on assets such as cryptocurrencies and into traditional safe havens. Gold has gained approximately 20% year to date, while silver has risen 23%, reflecting strong demand for defensive assets.
Bitcoin’s recent weakness highlights its sensitivity to macroeconomic developments. While often described as “digital gold,” the cryptocurrency continues to behave more like a high-beta risk asset during periods of market stress. With geopolitical tensions and trade policy risks still unfolding, volatility in digital assets may persist in the near term.
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