Bitcoin trades below $65,000 amid tariff uncertainty
Market Brief: Digital Assets Performance
Digital asset markets are experiencing a period of renewed volatility as global trade policy shifts and macroeconomic pressures weigh on investor sentiment.
Bitcoin Market Action
Bitcoin ($BTC) recently faced a sharp decline, dropping nearly **4.8%** to trade around **$64,300**. This move follows a period of tentative stabilization where the asset struggled to maintain momentum above the **$68,000** mark.
Trading volume has shown signs of exhaustion, with daily transactions declining to approximately **512,000**, down from previous highs near **700,000**. The total crypto market capitalization has retreated to approximately **203.15 trillion INR** (roughly **$2.45 trillion**), reflecting a **1.42%** decrease over the last 24 hours.
Technical Support and Resistance
The technical structure remains fragile. Analysts are focusing on the **$60,000** psychological support level, which served as a crucial floor earlier in February. A breach below this point could trigger further liquidations.
On the upside, a sustained recovery above **$66,500** and **$68,500** is required to shift the short-term bearish bias. The **$70,000** level stands as a primary resistance zone that bulls must reclaim to signal a broader trend reversal.
Macroeconomic and Policy Drivers
The downturn is largely attributed to heightened uncertainty surrounding U.S. trade policy. Recent announcements regarding a potential **15%** global tariff under Section 122 of the Trade Act have injected fresh risk premiums into speculative assets.
Additional pressure stems from:
* **Monetary Policy:** Hawkish signals from recent Federal Reserve minutes have dampened hopes for imminent rate cuts, pushing capital toward safer instruments.
* **Institutional Outflows:** Spot Bitcoin ETFs have seen a slowdown in appetite, with recent net outflows of approximately **$133 million**.
* **Sentiment:** The Fear and Greed Index has plunged into "Extreme Fear," currently hovering around a reading of **7 to 9**, the lowest level observed since late 2025.
Broader Altcoin Performance
The altcoin market is mirroring Bitcoin’s weakness. Ethereum ($ETH) continues to trade under pressure below the **$2,000** (approx. **1,77,000 INR**) threshold, while major assets like Solana ($SOL) and XRP have posted daily losses ranging between **2.5%** and **3.5%**.
Market participants remain cautious as they await further clarity on implementation timelines for trade duties and upcoming U.S. economic data releases.