Bitcoin sinks 25% from peak, Crypto market follows suit
Bitcoin plunged 25% from its all-time high on Friday, deepening losses during Asian trading hours. At 9:50 am IST, Bitcoin fell 5.47%, trading at $80,078.76, its lowest level since November 11, according to CoinMarketCap.
Why is Bitcoin Falling?
Traders reversed their bets after Donald Trump’s election, triggering a sharp sell-off, Bloomberg reported. The decline comes amid concerns over Trump’s policies and uncertainty in the US economy.
Bitcoin reached its peak of $109,241 on January 20, the day of Trump’s inauguration, as investors saw him as pro-crypto. However, the market now awaits concrete steps from Trump on crypto regulations and Bitcoin reserves, said Stefan von Haenisch, director at BitGo.
Other Cryptos Follow Suit
Bitcoin’s decline dragged Ether, Solana, and XRP down as well. The broader crypto market mirrored Bitcoin’s downturn, reflecting investor uncertainty.
Stock Market and Economic Concerns
The crypto slump coincides with a weak S&P 500 and low US consumer confidence data. Trump’s tariff announcements added to market jitters. He confirmed a 25% tariff on Canada and Mexico from March 4 and a 10% levy on Chinese imports, rattling investors.
What’s Next?
Traders are watching for Trump’s next moves on crypto policies and economic measures. Until then, uncertainty may keep Bitcoin and the broader market under pressure.
