Bitcoin tumbled down below $80,000 for the first time since November, triggered by a wider cryptocurrency sell-off amid soaring global market volatility.
The world’s largest digital asset dropped to $79,525.88 during early Asian trading on Friday, marking a steep fall from its record high of over $109,000 last month, the surge which has been fuelled by optimism that the US President Donald Trump would ease regulations on the crypto industry.
However, the crypto giant has been weighed down amidst growing economic uncertainty and concerns over Trump’s proposed tariffs. Many analysts believe these factors are pushing investors away from riskier assets like cryptocurrencies.
After a strong run in the markets, sentiment took a hit this week when Trump confirmed that a 25 per cent tariff on Mexico and Canada would take effect on 4 March, with an additional 10 per cent levy on China to follow.
Bitcoin reached an all-time high of $109,241 on 20 January, the day of Trump’s inauguration, but has since plunged almost 25 per cent as traders unwind bets placed on the back of his election.
The sell-off gained momentum during Friday’s Asian trading session, driven by growing concerns over Trump’s aggressive trade policies and broader economic instability. His pledges to slash taxes and immigration also raised fears of renewed inflation, which could compel the Federal Reserve to keep interest rates higher for longer than anticipated.