Bitcoin Stabilizes at $66K After Overnight Crypto Rout as Tariff Fears Rattle Markets

What to Know

• Bitcoin dropped from $67,700 to $64,270 shortly after midnight UTC before rebounding to around $66,300.
• The move mirrored weakness in S&P 500 futures and strength in gold.
• President Donald Trump outlined new 15% global tariffs, boosting haven demand.
• SOL and SUI fell 7%–8% in low liquidity conditions.
• Altcoin liquidations reached $270 million overnight.
• Bitcoin implied volatility jumped as traders increased downside hedges.

Bitcoin (BTC) steadied near $66,000 on Monday after a sharp overnight selloff briefly dragged prices below $64,300 during thin Asia trading hours.

The move came amid renewed volatility in global markets, driven by fresh U.S. tariff plans and heightened geopolitical tensions. While BTC managed a partial recovery, altcoins suffered deeper losses before stabilizing during European hours.

Tariffs and Geopolitics Drive Volatility

The selloff unfolded as U.S. President Donald Trump announced plans for new 15% global tariffs on trading partners. At the same time, increased U.S. military presence near Iran added to geopolitical uncertainty.

Risk assets reacted immediately. Futures tied to the S&P 500 fell nearly 1% after Sunday’s open before trimming losses. Meanwhile, gold surged to its highest level since late January as investors sought safe-haven assets.

Bitcoin’s drop and rebound closely tracked that broader market pattern — a sharp knee-jerk move lower followed by partial stabilization.

Altcoins Hit Hard in Thin Liquidity

While BTC recovered much of its decline, altcoins faced heavier pressure.

Solana (SOL) and SUI plunged between 7% and 8% during illiquid trading conditions, triggering approximately $270 million in liquidations across alternative tokens, according to market data.

Other tokens such as PUMP and ZRO also posted double-digit intraday declines before bouncing during European hours. ETHFI stood out with a more than 10% rebound from session lows, while TON showed relative resilience compared to peers.

Low order-book depth amplified the moves, a recurring theme in recent weeks as liquidity remains subdued.

Derivatives Signal Caution

Futures positioning suggests traders remain defensive.

Total crypto futures open interest has stayed below $100 billion for over two weeks, reflecting muted appetite for leverage. In the past 24 hours alone, roughly $500 million in leveraged positions were liquidated due to margin shortages.

Options markets also reflect elevated caution. Bitcoin’s 30-day implied volatility index jumped above 60%, and put options traded at a premium to calls across major maturities — a sign traders are actively hedging downside risk.

Notably, open interest in Tether Gold (XAUT) futures climbed 14% over 24 hours, suggesting some capital rotation toward tokenized safe-haven assets.

Can Bitcoin Reclaim $70,000?

Despite the volatility, bitcoin remains within its broader range.

Analysts note that if BTC establishes a local bottom and pushes back above $70,000, several altcoins could see outsized rebounds given the recent washout in liquidity.

However, until macro uncertainty eases and spot demand strengthens, rallies may remain fragile and reactive to headlines tied to tariffs, geopolitics, and global risk sentiment.

Frequently Asked Questions (FAQs)

Why did bitcoin drop overnight?

Bitcoin fell amid thin liquidity during Asia hours as traders reacted to new U.S. tariff announcements and escalating geopolitical tensions involving Iran.

How low did bitcoin fall?

BTC declined to $64,270 shortly after midnight UTC before rebounding toward $66,300.

Why did altcoins fall more than bitcoin?

Low liquidity conditions and leveraged positioning amplified moves in smaller tokens, leading to deeper percentage declines and $270 million in liquidations.

What are derivatives markets signaling?

Options markets show elevated implied volatility and strong demand for downside protection, with puts trading at a premium to calls.

Is $70,000 still a key level?

Yes. A sustained move back above $70,000 could signal renewed strength and potentially trigger broader upside in altcoins.