Bitcoin tumbled to its lowest point in 3.5 months on Friday, weighed down by uncertainty over U.S. President Donald Trump’s tariff policies, a lack of clarity on crypto regulations, and dwindling investor confidence following a $1.5 billion hack in rival cryptocurrency ether.
The world’s largest cryptocurrency by market value dropped over 5% to $79,666, dipping below the $80,000 mark for the first time since November 11.
“Bitcoin’s fall below $80,000 signals that the positive momentum driven by a crypto-friendly administration and high-profile endorsements has faded,” said Joshua Chu, Co-Chair of the Hong Kong Web3 Association.
Bitcoin has lost 25% of its market value since peaking at $105,000 in mid-December on optimism that the Trump administration would back a strategic bitcoin fund and ease regulatory restrictions. However, apart from appointing some crypto-friendly officials, no significant policy developments have materialized, leaving investors disappointed.
“The rally stalled when fresh catalysts failed to emerge,” said Kyle Rodda, Senior Analyst at Capital.com.
Bitcoin’s slide has also mirrored broader market trends, as the recent sell-off in U.S. tech stocks — known as the Magnificent Seven — dragged down riskier assets like cryptocurrencies, which are often treated as high-beta tech plays.
Meanwhile, ether, the second-largest cryptocurrency by market value, fell nearly 6% to $2,149.38, its lowest since January 2024.
Adding to the negative sentiment, Bybit, the world’s second-largest crypto exchange, reported on February 21 that hackers had stolen around $1.5 billion worth of ether — the largest crypto theft ever recorded, according to blockchain research firm Elliptic.
Investor caution has also been heightened by broader macroeconomic concerns, including the Federal Reserve’s scaled-back rate cut plans and Trump’s proposed tariffs on Canada, Mexico, and China, which have raised fears of higher global inflation and slower economic growth.
“It’s a perfect storm,” said Reuben Conceicao, Chief Strategy Officer at Metasig. “Between macroeconomic uncertainty, geopolitical risks, and the Bybit hack, it’s hard for investors to get excited about Bitcoin right now.”
Bitcoin-backed exchange-traded funds (ETFs) have also seen significant outflows in recent weeks, reflecting investors’ waning appetite for the cryptocurrency amid growing market jitters.
