Bitcoin (BTC) tumbled as much as 5% below $65,000 on Monday as U.S. futures declined and Asian markets posted mixed results in the first trading session after the Supreme Court struck down most of President Donald Trump's sweeping tariffs, a ruling that failed to ease investor uncertainty and triggered a broad pullback from speculative assets including cryptocurrency.
What Happened: Tariff Ruling Shakes Markets
The sell-off came after the Supreme Court on Friday invalidated much of Trump's tariff regime, which had rattled financial markets since its announcement last year. Bitcoin, once pitched as "digital gold," has now lost nearly half its value since hitting a record high of $126,210.50 on Oct. 6.
The S&P 500 futures fell 0.8%, Dow Jones Industrial Average futures dropped 0.7% and Nasdaq composite futures slid 1%. On Friday, the S&P 500 had closed up 0.7% at 6,909.51, the Dow added 0.5% to 49,625.97 and the Nasdaq rose 0.9% to 22,886.07.
In Asia, Hong Kong's Hang Seng index surged 2.2% to 26,980.22, while South Korea's Kospi edged 0.1% lower to 5,809.53. Australia's S&P/ASX 200 shed 0.6% to 9,024.40, Taiwan's Taiex gained 0.5% and India's Sensex rose 0.4%. Markets in Japan and mainland China were closed for holidays.
Trump said Friday he would sign an executive order imposing a 10% global tariff under a law that could limit it to 150 days, later raising that figure to 15%. He said he is also exploring additional tariffs that would require Commerce Department investigations.
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Why It Matters: Uncertainty Persists
Benjamin Picton of Rabobank said the mixed regional reactions are "highlighting the winners-and-losers effect of shifts in tariff policy that has just delivered a boost to countries who previously had a comparatively bad deal."
"U.S. tariff policy will continue to be a source of uncertainty for markets as traders attempt to price in the implications of what is still a movable feast," he wrote.
Traders still expect the Federal Reserve to cut rates at least twice this year, according to CME Group data, despite reports showing slowing U.S. economic growth and accelerating inflation. Fed officials have said they want to see inflation fall further before supporting additional rate cuts.
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