Bitcoin Drops 25% From Peak as Cryptocurrency Sell-Off Deepens
Bitcoin’s value has taken a sharp dive, plummeting over 25% from its record high in just six weeks. The downturn accelerated during Asian trading hours on Friday, with the cryptocurrency dropping 5.5% to $79,627 by midday in Singapore. This decline follows a broader selloff in digital assets, affecting major tokens like Ether, Solana, and XRP, which fell 7.3%, 7.1%, and 7.8%, respectively.
The crypto market had initially surged after Donald Trump’s election win, with Bitcoin hitting a historic peak of $109,241 on January 20, the day of his inauguration. However, investor sentiment has since shifted, with concerns mounting over Trump’s aggressive policies and economic uncertainty in the U.S. Traders who had bet on a crypto-friendly administration are now reassessing their positions.
Stefan von Haenisch, a trading executive at Bitgo Inc., noted that the current downturn aligns with the broader economic landscape. He added that while Trump has been vocal about supporting crypto, concrete policy moves remain unclear. Investors had hoped for initiatives such as a Bitcoin reserve or regulatory clarity, but no substantial actions have been taken so far.
The market decline is part of a larger selloff in Asia, where investors reacted negatively to Trump’s recent tariff announcements. The U.S. president stated that tariffs of 25% on Canadian and Mexican goods would take effect on March 4, alongside an additional 10% levy on Chinese imports. This led to a 2% drop in the MSCI AC Asia Pacific Index, reflecting growing economic concerns.
The bearish trend has also impacted U.S. Bitcoin exchange-traded funds (ETFs), with investors withdrawing over $1 billion on Tuesday—the largest single-day outflow since their launch. The massive sell-off signals a shift in sentiment as traders question Bitcoin’s near-term stability.
Bitcoin had become a key investment for those banking on Trump’s promises to position the U.S. as a global crypto leader. He previously stated his vision of making the country the “crypto capital of the planet and the Bitcoin superpower of the world.” However, recent developments have forced traders to reconsider how low Bitcoin could fall.
According to Ruslan Lienkha, head of markets at YouHodler, Bitcoin has technical support of around $70,000, meaning it may stabilize at that level unless broader financial markets remain in turmoil. He cautioned that while further declines are possible, investors shouldn’t assume the worst-case scenario.
Despite the downturn, Trump has taken some steps that pleased crypto advocates. His administration has appointed crypto-friendly officials and eased regulatory scrutiny on digital assets. The Securities and Exchange Commission (SEC), previously known for its strict stance under former Chair Gary Gensler, has recently closed investigations into several crypto companies.
For now, the crypto world is watching closely to see whether Trump will take tangible steps to boost digital assets—or if uncertainty will continue to weigh on the market.
