Bitcoin, the world’s largest cryptocurrency, has fallen below $80,000 for the first time since November, wiping out almost all the gains it made following Donald Trump’s pro-crypto stance after taking office. The sudden drop has sent shockwaves through the market, with major altcoins like Ethereum (ETH), Binance Coin (BNB), XRP, and Solana (SOL) also facing steep losses of 6.6% to 8.6%.
As of now, Bitcoin’s market capitalization sits at $1.59 trillion, with a 24-hour trading volume of $64.63 billion. The cryptocurrency has dropped 5.17% in the past day, triggering fears of further downside.
What’s Driving Bitcoin’s Decline?
Experts point to a combination of macroeconomic uncertainties, regulatory pressures, and large-scale institutional sell-offs as the main factors behind the sell-off.
- Trump’s Tariff Policies
The market was shaken after Trump announced a 10% tariff increase on Chinese goods, escalating economic tensions. Investors fear that this could slow global trade and weaken financial markets, affecting crypto sentiment. - $1.5 Billion Bybit Hack
The recent Bybit exchange hack, which saw $1.5 billion stolen, has also dented investor confidence. Security concerns surrounding exchanges often lead to panic selling, as seen in past high-profile hacks. - Massive Liquidations & Institutional Sell-Offs
A $106 million liquidation event took place after Bitcoin briefly touched $81,000, triggering a cascade of sell orders. Institutional investors, including BlackRock, have also been offloading large amounts of BTC and ETH, putting additional downward pressure on prices. - SEC’s Changing Stance on Crypto Regulation
Despite the market downturn, the SEC recently dropped its lawsuit against Coinbase and ended an investigation into Consensys, signaling potential regulatory clarity ahead. However, the uncertainty surrounding memecoins and their classification as securities continues to weigh on investor sentiment. - Market Sentiment & Bearish Trend
Analysts from CoinDCX Research noted that the crypto market has entered a strong bearish phase, with institutions leading the current wave of sell-offs. However, some assets like Litecoin (LTC) are showing resilience, with bulls defending key support at $120.
Bitcoin’s Rollercoaster Ride Since Trump’s Election
Bitcoin initially surged after Trump’s election victory on November 6, 2024, fueled by optimism around crypto-friendly policies and ETF inflows. It reached a peak of $109,350 in January 2025, but today’s drop below $80,000 has erased almost all those gains.
With uncertainty looming, traders are now closely watching key support and resistance levels to determine whether Bitcoin can regain momentum or if further losses are ahead.
What’s Next for Bitcoin?
Market experts remain divided on Bitcoin’s near-term outlook. Some expect a bounce-back to $84,000, while others warn of a prolonged downturn if macroeconomic conditions remain unfavorable.
For now, investors should brace for continued volatility as geopolitical tensions, regulatory decisions, and institutional movements shape the next phase of the crypto market.
