Bitcoin and major cryptocurrencies traded lower on Tuesday as a fresh mix of trade-policy uncertainty and Middle East tension pushed investors back toward traditional defensive assets, reinforcing crypto’s recent behavior as a risk trade rather than a haven.
According to CoinMarketCap data, Bitcoin near $62,750, Ethereum around $1,828 and XRP near $1.34, with all three tokens down on a 24-hour basis. CoinMarketCap’s aggregate market data put total crypto market capitalization at about $2.26 trillion, down 1.75% over the last 24 hours.
The move lower in digital assets came as broader markets digested a renewed tariff shock from Washington. U.S. trade uncertainty intensified after the Supreme Court struck down key parts of President Donald Trump’s earlier tariff framework, prompting the administration to propose a new temporary global levy, first at 10% and then 15% under a different statute.
That backdrop has been feeding a classic risk-off pattern. Gold rose more than 2% on Monday to a three-week high, with spot prices around $5,206 an ounce, as investors sought safety amid the tariff uncertainty. At the same time, the dollar index climbed 0.2% to 97.90 on Tuesday as markets reopened in Asia and traders reassessed trade and geopolitical risks.
Oil has added another layer of pressure. As of Feb 24, 2026, oil prices held near seven-month highs due to heightened tensions between the US and Iran. Brent crude rose to about $72 a barrel and U.S. crude to nearly $67. Traders priced geopolitical risk ahead of another round of U.S.-Iran nuclear talks in Geneva and weighed the possibility of wider regional escalation.
Rising oil, a firmer dollar and uncertainty around tariff policy are all factors that can tighten financial conditions and weigh on higher-beta assets, including crypto.
Tony Severino, YouHodler market analyst, argued that markets are responding less to a single economic data point and more to a broader regime shift in geopolitics and the global financial order.
Severino also referenced to a recent comment by Ray Dalio. Dalio wrote in an article titled “It’s Official: The World Order Has Broken Down“ on X that leaders at the Munich Security Conference effectively declared the post-1945 world order dead. This could be a sign of rising structural uncertainty around trade, security and capital flows.
Bitget CEO, Gracy Chen, commented: “Whenever geopolitical tensions rise, markets naturally turn cautious, and crypto is feeling that too. Investors are taking a step back to reassess positions, especially with the risk of oil price disruption if the Strait of Hormuz is affected, a stronger dollar, and shifting expectations around inflation and interest rates.
In moments like this, Bitcoin tends to trade like other risk assets, which is why we’re seeing pressure on key levels and higher volatility. But this looks more like a broader market repricing than any fundamental change in Bitcoin’s long-term outlook.”
The article “Will Bitcoin’s Drop Below $63K Signal Deeper Losses as Tariffs, US-Iran Tensions Pressure Risk Assets?” was first published on AlexaBlockchain. Read the complete article here: https://alexablockchain.com/Will-Bitcoin-Drop-Below-63K-Signal-Deeper-Losses/
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