Bitcoin Crashes Below $80,000, Erases Almost All Gains Under Trump: Why Is Crypto Market Down? – News18
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Bitcoin Price Latest: Market sentiment has been shaken by Trump’s tariff policies, regulatory concerns, and the recent $1.5 billion Bybit hack, eroding investor confidence.
As risk-off sentiment mounts, crypto investors should remain cautious about what lies ahead, says an expert.
Why Bitcoin Is Falling: The price of Bitcoin, the world’s largest cryptocurrency, on Friday plunged below $80,000 for the first time since November, erasing almost all gains made after US President Donald Trump took office on a pro-crypto agenda. Other cryptocurrencies, including Ethereum, BNB, XRP and Solana, also saw large drops falling between 6.6 per cent and 8.6 per cent.
The market cap of Bitcoin stood at nearly $1,590 billion. Its 24-hour trading volume was $64.63B. Bitcoin is down by 5.17 per cent in the last 24 hours with a circulating supply of 19.83 million.
Why Is Bitcoin Falling?
Avinash Shekhar, co-founder and CEO of Pi42, said, “Bitcoin has plunged below $80,000 since November amid growing macroeconomic uncertainties. Market sentiment has been shaken by Trump’s tariff policies, regulatory concerns, and the recent $1.5 billion Bybit hack, eroding investor confidence. Ethereum has also suffered, dropping to a yearlong low.”
A massive $106 million liquidation occurred as Bitcoin briefly hit $81,000, triggering further volatility, he added.
“Investors are optimistic yet in fear whether Bitcoin has found a near-term floor or if more downside is imminent. Meanwhile, Dogecoin may show resilience, and may gain value amid the major assets struggle. Optimism is that Bitcoin can show bullishness again to $84,000, the market braces for the optimistic high-stakes weekend. Traders are eyeing key technical levels and economic factors that could dictate Bitcoin’s next move. As risk-off sentiment mounts, crypto investors should remain cautious about what lies ahead,” Shekhar.
CoinDCX Research Team said in a note, “The crypto market has entered a strong bearish phase as Bitcoin slumps below $80,000 for the first time since the November 2024 breakout. The other popular altcoins are also experiencing a similar sell-off but have been holding above their crucial support.”
The institutions are playing a major role in the ongoing sell-off as Blackrock has been selling billions worth of BTC & ETH. Meanwhile, Litecoin is displaying some strength with the possibility of a quick rebound as the bulls continue to defend the local support at $120, it added.
“The tariff war escalated after President Trump announced an additional 10% tariff on China, which is believed to have adversely impacted the crypto markets. After Uniswap & Gemini, the SEC ends an investigation on Consensys and drops a lawsuit on Coinbase, hinting towards clearer regulation on the horizon. On the other hand, the SEC stated that most of the memecoins do not qualify as securities, as the Howey Test keeps them out of the security rules mainly since they thrive on hype, not utility,” CoinDCX Research Team said.
On November 6, 2024, when Donald Trump won the US Presidential elections, Bitcoin crossed the $75,000-mark to hit its all-time high of $75,011.06, supported by significant inflows into exchange-traded funds (ETFs) amid reports of Donald Trump’s gains in the US presidential elections.
Bitcoin continued to surge after the Trump victory on a pro-crypto agenda and hit its peak of $109,350 in January 2025.
