Bitcoin has plunged to a perilous two-week low, shattering the critical $65,000 support level as global markets reel from President Donald Trump's latest trade war escalation. The world's leading cryptocurrency is currently trading near $64,300, extending a brutal sell-off that has wiped out nearly a quarter of its value since the start of 2026. The catalyst for this Bitcoin price crash 2026 is the administration's sudden announcement of a 15% global tariff hike, a move that has sent shockwaves through the digital asset market news cycle and triggered a massive flight from risk assets.
Section 122: The Legal Loophole Behind the Crash
The chaos began late Friday following a stunning Supreme Court ruling that struck down the President's previous tariff regime imposed under the International Emergency Economic Powers Act (IEEPA). In a defiant pivot, President Trump invoked Section 122 of the Trade Act of 1974 on Saturday, initially setting a 10% global import duty before rapidly hiking it to 15% effective immediately. This obscure statute grants the President authority to impose temporary tariffs for up to 150 days to address balance-of-payments deficits.
Markets hate uncertainty, and this legal maneuvering has delivered it in spades. "The switch to Section 122 is a desperate but potent move," notes a senior policy analyst. While the tariffs are technically temporary, the immediate Trump tariff crypto impact has been severe. Investors fear that a renewed trade war will spike consumer prices, forcing the Federal Reserve to keep interest rates elevated—a scenario that historically crushes liquidity-dependent assets like Bitcoin.
ETF Exodus and $360 Million in Liquidations
The price collapse has been exacerbated by a crumbling institutional backbone. Spot Bitcoin ETF outflows have now stretched into their fifth consecutive week, with data confirming a staggering $3.8 billion exited U.S.-listed funds in this period alone. This sustained institutional selling suggests that the "smart money" was de-risking well before the weekend's tariff bombshell dropped.
Traders caught on the wrong side of the volatility paid a heavy price. According to Coinglass data, crypto market liquidations today topped $360 million, with the vast majority being leveraged long positions betting on a weekend recovery. As Bitcoin sliced through the $65,000 floor, a cascade of stop-loss orders accelerated the decline, leaving bulls with nowhere to hide. The market structure now looks increasingly fragile, with the asset down over 45% from its October record highs of roughly $126,000.
Digital Gold vs. Real Gold: The Safe Haven Divergence
One of the most concerning developments for crypto proponents is the decoupling of the Bitcoin vs Gold macro narrative. While Bitcoin plummeted 5% in response to the tariff news, gold prices rallied approximately 1%, acting as the traditional hedge against geopolitical chaos. This divergence undermines the "digital gold" thesis that many investors leaned on during the 2025 bull run.
"When real fear enters the market, capital retreats to centuries-old safety, not volatile digital assets," explains a strategist from Deutsche Bank. The correlation between Bitcoin and the Nasdaq 100 has tightened once again, with both asset classes suffering as traders price in the economic drag of a 15% tax on all U.S. imports. Until the regulatory smoke clears, Bitcoin is being treated strictly as a high-beta risk asset rather than a store of value.
Critical Support Levels: Is $60k Next?
Technical analysts are now scrambling to identify the floor. With the psychological $65,000 barrier breached, all eyes are on Bitcoin support levels 60k. A sustained break below $60,000 could open the floodgates for a retest of the $55,000 region, a level not seen since late 2024. Conversely, bulls need to reclaim $67,500 quickly to invalidate the current bearish breakdown.
The coming days will be decisive. The Section 122 tariffs face inevitable legal challenges, and Congress may yet intervene before the 150-day window expires. However, for now, the crypto market remains in a precarious position, trapped between aggressive trade policy and waning institutional demand.
