Bitcoin has recently plunged, with the digital currency declining by 25% from its all-time high score achieved only two months ago. The cryptocurrency decline continued to intensify during Asian trading sessions on Friday, with Bitcoin sliding by 5.47% to $80,078.76 at 9:50 am IST, as reported by CoinMarketCap. This is its lowest level since November 11, as people try to adjust their holdings in response to the policies of the new president of the United States, Donald Trump.
This Bitcoin crash has sent a shockwave through the rest of the cryptocurrency market, with Ether, Solana, and XRP all falling. Before this, Bitcoin had risen to $109,241 on January 20, the day of Trump’s inauguration, as expectations rose that he would be friendly to the sector. However, the problem has been the antagonistic policies that he has adopted and the general economic environment in the United States.
Some market experts have pointed out that the lack of clarity on the part of Trump regarding the future of the crypto industry in the US, including his plan regarding the Bitcoin stockpile, has left the investors wondering. Stefan von Haenisch, the head of over-the-counter trading at crypto custody firm Bitgo, said that the macroeconomic environment is the main driver of Bitcoin’s decline.
It is not only the crypto market that has been hit – equity markets all over the world have been hit as well, with the S&P 500 falling on weak US consumer confidence numbers. The sell off accelerated after Trump confirmed that 25% tariffs on Canada and Mexico would go into effect from March 4, while Chinese imports would be hit by an additional 10% levy.
With economic uncertainties on the rise, the price of Bitcoin has become rather volatile and investors are waiting for Trump’s next decision concerning digital assets.
