Bitcoin extended its decline to below $80,000 on Friday as the cryptocurrency market faced mounting pressure from U.S. economic uncertainties and escalating tariff tensions under President Donald Trump.
The world’s largest digital asset has now lost more than 25% of its value since reaching an all-time high of $109,241 on January 20, the day of Trump’s inauguration.
The selloff deepened during Asian trading hours with Bitcoin sliding 5.5% to $79,627 at 12:05 p.m. in Singapore, its lowest level since November 10.
The broader cryptocurrency market mirrored the downturn with Ether down 7.3%, Solana losing 7.1% and XRP dropping 7.8%.
Investor Sentiment Shifts as ‘Trump Trade’ Unravels
Bitcoin’s surge following Trump’s election victory in November was driven by optimism that his administration would ease regulatory pressure on digital assets.
His pro-crypto rhetoric, including promises to make the U.S. “the Bitcoin superpower of the world,” fueled bullish bets on the market.
However, recent policy shifts have rattled investors. Trump’s latest comments on tariffs, including a 25% levy on Canadian and Mexican imports set to take effect on March 4 and an additional 10% tariff on Chinese goods, have triggered a broad risk-off sentiment across global markets.
The MSCI AC Asia Pacific Index fell 2% as investors reacted to the uncertainty.
“Given the macro environment, it’s not surprising to see we are where we are,” said Stefan von Haenisch, Director of Over-the-Counter Trading at Bitgo Inc. “Traders are still waiting for Trump to take concrete steps in favor of crypto, including his promised Bitcoin stockpile.”
Bitcoin ETFs Face Heavy Outflows as Market Cools
Investor sentiment has also turned negative toward U.S. spot Bitcoin exchange-traded funds (ETFs), which saw outflows of over $1 billion on Tuesday—their largest single-day withdrawal since launching last year.
The reversal showed a growing shift in investor strategy, as traders reevaluate the sustainability of Bitcoin’s post-election rally.
“Buying Bitcoin was a popular ‘Trump trade’ after the election, but now traders are questioning how much policy support the sector will actually get,” said Ruslan Lienkha, Chief of Markets at crypto platform YouHodler.
Where is Bitcoin Headed Next?
With Bitcoin now trading below the key $80,000 level, traders are closely watching for support near $70,000, a threshold that technical analysts suggest could serve as a critical floor.
“We will only see this level if negative sentiment dominates the equity markets,” Lienkha noted.
Despite the downturn, some market participants remain optimistic, citing Trump’s crypto-friendly appointments and the recent closure of SEC investigations into key crypto firms as positive signs for the industry.
However, with the broader economic climate growing uncertain, Bitcoin’s next move remains highly dependent on investor sentiment, regulatory clarity and the stability of global financial markets.
