Athira Sethu
Kochi, 28 February 2025
Bitcoin’s price fell below $80,000 for the first time since November, and it was a major fall. The price dropped over 5% in one day to $79,666. This decline is attributed to a number of reasons, ranging from uncertainty surrounding U.S. President Donald Trump’s trade policy to cryptocurrency regulations and a big hack of ether, a competitor to Bitcoin.
The price of Bitcoin has fallen sharply from its peak in mid-December, when it was well over $105,000. Then, most investors expected the Trump administration to implement policies favoring the crypto market. Even though there were some pro-crypto appointments, no significant policy shifts have been made since then.
Analysts also blame the general state of the wider financial markets, including a slowdown in the tech space, for bitcoin’s fall.
Ether, the second-largest cryptocurrency, also declined sharply, losing almost 6% to $2,149.38, its lowest since January. Moreover, investors have been withdrawing their money from bitcoin-backed exchange-traded funds, which further distresses the market.
Global economic issues are also helping to drive the decline. There are indications that the U.S. economy may be slowing, which is making global markets nervous. To add to that, Trump’s proposals to impose a 25% tariff on imports from Canada and Mexico in March and further tariffs on Chinese products have created concerns about inflation and reduced global growth.
The cryptocurrency market was also rattled with a massive Bybit hack, the second-biggest cryptocurrency exchange. The hackers stole approximately $1.5 billion in worth of ether from the exchange. The hack, one of the largest in history, has further contributed to the lack of trust in the market.
