Bitcoin (BTC) has plunged toward the critical $62,500 mark as a surprise 15% universal tariff hike from the Trump administration sent shockwaves through global financial markets. The sudden geopolitical maneuver, following a contentious Supreme Court ruling, has decimated risk appetite, pushing the Crypto Fear and Greed Index to a historic low of 5. As panic selling gripped the sector, over $466 million in liquidations were triggered in just 24 hours, leaving traders bracing for what could be the digital asset's fifth consecutive month of losses.

Trump's 15% Tariff Shock: The Catalyst for the Crash

The primary driver behind today's market turmoil is President Trump's immediate implementation of a 15% universal tariff. This move comes less than 48 hours after the Supreme Court struck down his previous attempts to levy tariffs under the International Emergency Economic Powers Act (IEEPA). Undeterred, the administration utilized the Trade Act of 1974 to enforce the new rate, effectively taxing all foreign imports and sparking fears of a renewed global trade war.

Investors reacted swiftly, dumping risk-on assets as the implications of higher inflation and disrupted supply chains became clear. While the tariff aims to protect American industry, its immediate effect has been a liquidity drain from speculative markets. Bitcoin, often viewed as a liquidity gauge, took the brunt of the sell-off, dropping from stable support near $66,000 to test the fragile $62,500 level.

Crypto Fear and Greed Index Hits 5: Extreme Capitulation

Sentiment in the cryptocurrency market has reached rock bottom. The Crypto Fear and Greed Index plummeted to a score of 5 today, a level indicating "Extreme Fear." This is a historically rare event; the index has only touched this depth three times since its inception in 2018—during the COVID-19 crash of March 2020, the Terra/Luna collapse in 2022, and the FTX bankruptcy.

A score of 5 typically signals widespread capitulation, where retail investors exit the market en masse to cut losses. However, contrarian analysts note that such extreme readings have historically marked macro bottoms. "When the market is screaming capitulation, it's often the point of maximum financial opportunity," noted a senior analyst at CoinGlass, though they warned that volatility would likely persist in the short term.

$466 Million Wiped Out in Liquidation Event

The rapid price descent triggered a cascade of forced selling. Data from Coinglass confirms that $466 million in liquidations occurred across major exchanges, with long positions accounting for nearly 80% of the wiped-out capital. Leverage was flushed out of the system as Bitcoin sliced through intermediate support levels at $65,000 and $64,200.

This liquidation event has exacerbated the downside move, creating a feedback loop of selling pressure. The derivatives market shows that funding rates have turned deeply negative, suggesting that traders are now aggressively shorting the bounce, betting on a continuation of the bearish trend toward February 2026 lows.

Bitcoin Price Analysis: Will $60,000 Support Hold?

As Bitcoin hovers precariously above $62,000, all eyes are on the psychological support at $60,000. Technical analysts warn that a confirmed break below this fortress level could open the floodgates for a drop toward the realized price of approximately $54,700—the average cost basis for all Bitcoin holders.

If Bitcoin fails to recover before the monthly close, it will mark its fifth consecutive month of losses, the longest losing streak since the 2022 bear market. However, on-chain data offers a glimmer of hope: while retail panic is palpable, whale wallets (holding 1,000+ BTC) have been quietly accumulating during this dip, absorbing the selling pressure from panicked retail hands.

What to Watch Next

Traders should closely monitor the $60,000 support zone and the developing narrative around the universal tariff's legal challenges. If the administration faces further judicial pushback, risk assets could see a sharp relief rally. Conversely, if the tariffs stick, the crypto market may face a prolonged period of accumulation in the low $60k range.