Bitcoin drops 25% from all-time high: Key reasons
Photo: Bitcoin price drops to $82,000 (Getty Images)
On Friday, February 28, Bitcoin’s decline intensified during Asian trading. The cryptocurrency’s value dropped by 25% compared to its all-time high, which was set less than six weeks ago, as traders reversed bets made after Donald Trump was elected President of the United States, reports Bloomberg.
Bitcoin fell by 5.5% at $79,627 at 12:05 p.m. in Singapore, after hitting its lowest level since November 10. This movement was part of a broader cryptocurrency downturn. Notably, Ether, Solana, and XRP have also seen sharp declines recently.
The sell-off highlights the rapid shift in the fortunes of digital assets, which had surged following Trump’s election victory. Bloomberg recalled that Bitcoin reached its all-time high of $109,241 on Monday, January 20, the day of Trump’s inauguration. However, since then, it has declined amid concerns over the president’s aggressive stance and broader fears regarding the US economy.
Cryptocurrency has also come under pressure due to a general decrease in risk appetite among investors, who have been unwinding Trump-related trades across various markets. The S&P 500 index declined this week after weak US consumer confidence data, raising questions about the economic outlook.
Friday’s Bitcoin drop was also accompanied by a broad sell-off in Asian stocks, as regional traders reacted to Trump’s latest comments on tariffs. The US President announced that 25% tariffs on Canada and Mexico would take effect on March 4, while Chinese imports would face an additional 10% levy.
For more details on why the cryptocurrency market crash occurred, how much investors lost, and what to expect next, read the RBC-Ukraine report.
