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.
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