Bitcoin’s $64K drop seen as macro shock

Bitcoin slid to $63,822, extending weekly losses to 6.4% and marking a roughly 50% drawdown from its October high of $126,080 amid tariff-driven volatility and persistent ETF outflows.

Analysts told Decrypt that the move reflects compounding macro shocks and excessive leverage rather than a structural failure of Bitcoin’s four-year cycle, as digital asset investment products log a fifth consecutive week of net outflows.

“Bitcoin's drop below $64,000 was not a single event,”

Said Rachael Lucas, crypto analyst at BTC Markets, adding that:

“It resulted from several macro shocks landing over time on a market carrying significant leverage.”

Lucas pointed to President Donald Trump’s 15% global tariff increase and risk-off flows into traditional safe havens, arguing that despite its “digital gold” narrative, Bitcoin continues to trade like a risk asset during periods of macro fear.

The backdrop has been compounded by expectations that the Federal Reserve will keep rates unchanged, with CME FedWatch data showing a 96% probability of no March cut as inflation remains sticky under a higher-for-longer regime.

Nick Ruck of LVRG Research said the price fall “does not suggest a structural breakdown but reflects a combination of macro-driven pressures,” while Justin d’Anethan of Arctic Digital noted that a move towards $55,000 is “definitely not out of reach” in the current environment.

While near-term risks remain skewed lower, analysts maintain that structural demand drivers such as scarcity dynamics and institutional adoption remain intact, framing the correction as a macro-induced reset rather than a broken cycle.

At the time of reporting, Bitcoin price was $62,806.83.