Bitcoin Price Update: Market sentiment is shaken by Trump’s tariff policies, regulatory concerns, and the recent $1.5 billion Bybit hack, eroding investor confidence.
Reasons for Bitcoin’s Decline
Bitcoin, the world’s largest cryptocurrency, plunged below $80,000 on Friday. For the first time since November, wiping out nearly all gains made. Following US President Donald Trump’s pro-crypto agenda. Other cryptocurrencies, including Ethereum, BNB, XRP, and Solana, also experienced significant declines, falling between 6.6% and 8.6%. Bitcoin’s market cap currently stands at nearly $1.59 trillion, with a 24-hour trading volume of $64.63 billion. Bitcoin has decreased by 5.17% in the last 24 hours, with a circulating supply of 19.83 million coins. Avinash Shekhar, co-founder and CEO of Pi42, explained. “Bitcoin has fallen below $80,000 since November amid growing macroeconomic uncertainties. Market sentiment has been affected by Trump’s tariff policies. Regulator concerns and the recent $1.5 billion hack of Bybit. Which has eroded investor confidence. Ethereum has also declined, reaching a year-long low. ”A significant liquidation of $106 million occurred, when Bitcoin briefly touched $81,000, resulting in further volatility, he added. “Investors are feeling both optimistic and fearful about. Whether Bitcoin has found a near-term floor or if further declines are imminent. Meanwhile, Dogecoin may show resilience and could gain value as major assets struggle. There is hope that Bitcoin can rebound to $84,000, and the market is preparing for a high-stakes weekend. Traders are monitoring key technical levels and economic factors that could influence Bitcoin’s next move. As a risk-averse sentiment arises, crypto investors should remain cautious about the future,” Shekhar said.
The CoinDCX Research Team said, “The crypto market has entered a strong bearish phase. As Bitcoin drops below $80,000, for the first time since the November 2024 breakout. Other popular altcoins are also experiencing a sell-off but have been maintaining their crucial support levels. Institutional investors play a significant role in the ongoing sell-off, with Blackrock reportedly selling billions worth of Bitcoin and Ethereum. Additionally, Litecoin is showing some strength. Potentially indicating a quick rebound as bulls defend the local support at $120. “The tariff war escalated after President Trump announced an additional 10% tariff on China. Which is believed to have affected the crypto markets. After investigations into Uniswap and Gemini, the SEC concluded its investigation into ConsenSys and dropped a lawsuit against Coin base. Suggesting clearer regulation may be forthcoming. On the other hand, the SEC stated that most meme coins, do not qualify as securities according to the Howey Test. As they are driven primarily by hype rather than utility, the CoinDCX the CoinDCX Research Team stated. On November 6, 2024, when Donald Trump won the US Presidential election. Bitcoin crossed the $75,000 mark to reach an all-time high of $75,011.06. Supported by significant inflows into exchange-traded funds (ETFs) in anticipation of Trump’s victory.
Following Trump’s win and his pro-crypto agenda, Bitcoin continued to surge, hitting a peak of $109,350 in January 2025.