Bitcoin plunges below $80,000 as Trump policies, global turmoil shake markets
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Bitcoin dropped below $80,000 on Friday as a broader cryptocurrency selloff erased $1 trillion from the market, raising concerns over a deeper downturn. The digital asset is now down nearly 25% from its all-time high of nearly $110,000 in December, with analysts warning of further declines.
The decline follows a week-long rout in Bitcoin, which hit a three-month low, reversing gains made after US President Donald Trump’s election victory in November. Bitcoin had surged following Trump’s win, as he positioned himself as a pro-crypto candidate. However, investor sentiment has soured amid uncertainty surrounding Trump’s proposed tariffs, global economic concerns, and ongoing conflict such as Russia-Ukraine and Israel’s war on Gaza.
Market Analysts Warn of Further Losses
Technical analysts predict Bitcoin’s price could drop further if negative sentiment persists in equity markets.
“Bitcoin’s next target is around the $70,000 level, which serves as a strong support zone,” said Ruslan Lienkha, chief of markets at crypto platform YouHodler. “However, this will depend on broader market conditions. US stock indices have been in the red for several consecutive days, but it is still too early to confirm a long-term downtrend.”
Markus Thielen, founder of 10x Research, noted that Bitcoin is following an “ascending broadening wedge pattern,” which could result in a price target in the low $70,000 range.
Bybit Hack and Global Economic Fears Weigh on Sentiment
Adding to the market turbulence, Bybit, a major cryptocurrency exchange, suffered a $1.5 billion hack, one of the largest crypto heists in history. The incident has further unsettled investors already grappling with concerns over inflation and the Federal Reserve’s decision to pause interest rate cuts.
“The market has become volatile in reaction to the Bybit incident,” said Jeff Mei, chief operating officer at crypto exchange BTSE. “Macroeconomic concerns, including inflation and uncertainty over US monetary policy, have also contributed to the downturn.”
Trump Administration’s Crypto Policies Awaited
Despite the current slump, some crypto investors remain optimistic, citing potential regulatory developments under the Trump administration. The president recently signed an executive order promoting cryptocurrency advancement in the US and initiated a national digital asset stockpile. His administration has also formed task forces, including a “crypto czar,” to establish a clearer regulatory framework for digital assets.
Geoffrey Kendrick, head of digital assets research at Standard Chartered, told CNBC’s Squawk Box Europe that Bitcoin could still surpass the $200,000 mark this year, citing increased institutional adoption and regulatory clarity as potential catalysts for future gains.
As of early trading in Asia, Bitcoin was down 3.45% on the day, trading at around $80,500.
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