Bitcoin plunges 25% from record peak amid crypto market decline
Bitcoin experienced a significant decline during Asian trading hours on Friday, falling 25% from its recent all-time high, marking a sharp reversal in fortunes for the digital currency following the election of US President Donald Trump. At 10:13 am in Singapore, Bitcoin was down 2.6% at US$82,220, hitting its lowest level since November 11. This drop was part of a broader downward trend in the cryptocurrency market, with other major coins like Ether, Solana, and XRP also witnessing significant declines in recent days.
The rapid sell-off highlights the volatility of digital assets, which saw a surge in value after Trump’s election victory. Bitcoin reached an all-time high of US$109,241 on January 20, coinciding with Trump’s inauguration. Since then, however, the cryptocurrency has experienced a steep decline, driven by concerns about the President’s confrontational approach and broader apprehensions surrounding the US economy.
Stefan von Haenisch, the director of over-the-counter trading in Apac at the crypto custody firm Bitgo, noted, “Given the macro environment, it’s not surprising to see we are where we are.” Traders are anticipating concrete actions from Trump, who is known for his favorable stance towards cryptocurrencies, such as establishing a Bitcoin reserve. Additionally, the overall market sentiment has been shifting, with investors retracting from Trump-related trades across various markets. The S&P 500, for instance, has seen a decline this week, spurred by lackluster US consumer confidence data that raised concerns about the economic outlook.
The crypto sell-off on Friday coincided with a broader decline in Asian shares, as traders in the region reacted to Trump’s recent announcements regarding tariffs. The President declared that 25% tariffs on Canada and Mexico would go into effect on March 4, while Chinese imports would face an additional 10% levy.
In conclusion, the crypto market’s recent downturn, led by Bitcoin’s 25% drop from its all-time high, reflects the changing landscape following Trump’s election win. With uncertainties surrounding Trump’s policies, including his stance on cryptocurrencies, and broader economic concerns, digital assets are facing increased scrutiny. As investors reassess their risk appetite and market dynamics evolve, the cryptocurrency market continues to navigate through turbulent waters.
