Bitcoin Drops Over 20% from Record High; What to Expect

Bitcoin fell to its lowest level since early November, marking a decline not seen since the last “crypto winter,” according to analysts.

The cryptocurrency’s sell-off deepened on Friday as investors rushed to safer assets following the latest tariff threats from U.S. President Donald Trump. This marks a stark reality check for one of Trump’s most popular trades.

Rising Volatility

Bitcoin initially dropped 7% at the start of the session but has since recovered slightly, rising 1% in the past 24 hours to $84,058—its lowest level since early November, according to Binance. The cryptocurrency has now fallen 23% from its all-time high less than six weeks ago. Meanwhile, Ethereum broke below the key $2,300 level.

Several factors have contributed to Bitcoin’s more than 20% decline from its record high, including the collapse of a memecoin that significantly impacted the crypto ecosystem and the Solana network, a $1.4 billion hack on the Bybit exchange, and concerns over Trump’s tariff policies, which have added to broader market volatility.

Trump Announcements

On Thursday, Trump announced that 25% tariffs on Canada and Mexico would take effect starting March 4, dashing hopes that he might reverse course after a previous delay. He also stated that Chinese imports would face an additional 10% levy, prompting officials in Beijing to vow “all necessary measures” in response.
The Trump Trade Unravels

The sell-off highlights a rapid shift in sentiment for what was once one of the most popular trades linked to Trump’s presidency: buying Bitcoin in anticipation that his crypto-friendly stance would fuel a broad rally.

For a while, that bet paid off. Bitcoin reached an all-time high of $109,241 on January 20, the day of Trump’s inauguration. However, cryptocurrencies have recently come under pressure amid growing concerns that Trump’s aggressive trade policies could lead to widespread market disruption.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

Related Articles

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments