Bitcoin fell below $80,000 on Friday for the first time in over three months, as a broad sell-off in the cryptocurrency sector accelerated amid volatility in global markets. The leading digital asset dropped to $79,525.88 in early Asian trading, its lowest level since November 11, and more than 25% down from its record high above $109,000 set in mid-December.
The decline marks a sharp reversal from Bitcoin’s post-election rally, which saw prices soar after Donald Trump’s victory in November. The U.S. president positioned himself as a pro-crypto candidate, vowing to reduce regulations and make the U.S. a global leader in digital assets. However, investor optimism has faded in recent weeks as concerns mount over Trump’s trade policies, geopolitical tensions, and the Federal Reserve’s stance on interest rates.
Market Volatility and Crypto Security Fears
Bitcoin’s slump comes amid a broader downturn in risk assets, driven by uncertainty over Trump’s aggressive tariff policies and ongoing conflicts in Ukraine and Gaza. Additionally, investor sentiment took a hit following news that Bybit, a major cryptocurrency exchange, suffered a $1.5 billion hack—one of the largest crypto heists in history.
“It seems that the market has become volatile in reaction to the Bybit incident,” said Jeff Mei, chief operating officer at crypto exchange BTSE. He added that inflation concerns and expectations of fewer interest rate cuts from the Federal Reserve have also weighed on markets.
Despite the recent decline, some crypto bulls remain optimistic, pointing to Trump’s ongoing regulatory initiatives. The president has already signed an executive order promoting cryptocurrency development and created a task force, along with a designated “crypto czar,” to establish a clearer regulatory framework.
As the market navigates regulatory uncertainty and macroeconomic pressures, investors are watching closely to see whether Bitcoin can regain momentum or if further declines are ahead.
