Bitcoin (COIN:BTCUSD) briefly dropped under the $65,000 level during Asian trading on Monday, extending recent weakness as large holders continued to offload cryptocurrencies while uncertainty surrounding U.S. trade policy further dampened investor risk appetite.
The world’s largest cryptocurrency declined 4% to $65,296.8 as of 01:30 ET, after falling to an intraday low of $64,384.2 over the previous 24 hours. Prices moved closer to levels seen in early February, when Bitcoin temporarily slipped below $60,000.
Broader cryptocurrency markets also weakened, with Ether facing additional pressure after its founder, Vitalik Buterin, was reported to have sold more of his holdings.
Whale activity pressures Bitcoin
On-chain data from CryptoQuant indicated a growing flow of Bitcoin moving from large private wallets — commonly referred to in the industry as “whales” — onto major exchanges, a pattern often associated with increased selling activity.
Whales — typically early adopters, institutional investors or crypto-focused funds holding substantial Bitcoin positions — can significantly influence short-term price movements when transferring assets to trading platforms.
Transfers to exchanges are generally interpreted as preparation for sales and can increase downward pressure by boosting available supply. At the same time, buying demand appeared limited across major crypto venues, with sentiment remaining fragile following steep declines in recent months.
Market caution was further amplified by renewed volatility in U.S. trade policy. Last week, the U.S. Supreme Court invalidated a large portion of President Donald Trump’s tariffs, ruling that he had exceeded his authority when imposing duties on key trading partners.
Trump subsequently introduced a new global tariff of 10% on imports for 150 days before raising the rate to 15%, the highest level permitted under the relevant statute, unsettling global financial markets.
The escalation weighed on equities and other risk-sensitive assets across Asian markets on Monday, as investors worried that increased trade barriers could slow global economic growth and tighten liquidity conditions — both typically negative factors for cryptocurrencies.
Altcoins decline as Ether faces selling pressure
Other major digital assets also moved lower, with Ether particularly affected after reports that Buterin sold additional tokens.
Ether dropped nearly 5% to $1,878.63, approaching lows last seen in early February. Over the weekend, Buterin reportedly sold at least 1,694 Ether valued at roughly $3.3 million. While the transaction represents only a small share of his total holdings, it raised concerns about potential additional whale-driven selling pressure on the second-largest cryptocurrency.
Among other altcoins, XRP, Solana, Cardano and BNB fell between 3% and 8%.
In the memecoin segment, Dogecoin declined 2.9%, while $TRUMP fell 3.4%.
Economic data adds to caution
U.S. economic data released Friday reinforced the cautious tone in markets. Gross domestic product expanded at an annualised rate of 1.4% in the fourth quarter, highlighting slowing economic momentum, while the personal consumption expenditures price index remained elevated at 2.9% year on year.
Persistently high inflation combined with moderating growth has complicated expectations for Federal Reserve rate cuts, reducing confidence that monetary easing will arrive soon.