In a dramatic downturn, Bitcoin’s price plunged below $80,000 on Friday, marking its lowest point since November. This sharp decline has effectively erased the gains accumulated since President Donald Trump assumed office with a pro-crypto stance. The cryptocurrency market as a whole is experiencing significant turbulence, with major assets trading well below their peak prices.
Market Overview
As of February 28, 2025, Bitcoin’s market capitalization stands at approximately $1.58 trillion, with a 24-hour trading volume of $64.63 billion. The cryptocurrency has depreciated by 5.17% in the last 24 hours. Other leading cryptocurrencies have also suffered notable losses:
- Ethereum (ETH): Currently trading at $2,116.51, down 11.09% from the previous close.
- BNB: Priced at $569.34, experiencing a 7.56% decrease.
- XRP: Valued at $2.02, reflecting a 10.22% drop.
- Solana (SOL): Trading at $130.53, down 7.97%.
Why Is Bitcoin Falling?
Several factors have converged to precipitate this market downturn:
- Regulatory Uncertainty: Investors are expressing disappointment over the anticipated regulatory support that has yet to materialize. President Trump’s executive order established a working group to propose digital asset regulations, but concrete outcomes remain pending. The lack of clarity has led to market apprehension.
- Macroeconomic Concerns: The recent confirmation of new tariffs on Canada, Mexico, and China by President Trump has introduced additional economic uncertainty. This move has exerted pressure on tech stocks and, by extension, the cryptocurrency market. Reuters
- Security Breaches: A significant $1.5 billion hack on the crypto exchange Bybit has undermined investor confidence in the security of digital asset platforms. This event has contributed to the overall negative sentiment in the market. The Australian
Expert Insights
Avinash Shekhar, Co-Founder and CEO of Pi42, commented on the situation:
“Bitcoin has plunged below $80,000 since November amid growing macroeconomic uncertainties. Market sentiment has been shaken by Trump’s tariff policies, regulatory concerns, and the recent $1.5 billion Bybit hack, eroding investor confidence.”
The CoinDCX Research Team also noted:
“The crypto market has entered a strong bearish phase as Bitcoin slumps below $80,000 for the first time since the November 2024 breakout. Other popular altcoins are also experiencing a similar sell-off but have been holding above their crucial support.”
Investor Sentiment
The initial euphoria following President Trump’s election and his pro-crypto agenda has diminished. Hopes for a national Bitcoin reserve and favorable regulatory frameworks have not been realized, leading to market disappointment. Analysts suggest that clear regulatory improvements are necessary for significant price recovery.
Outlook
While the current market trajectory appears bearish, some experts maintain an optimistic long-term view. However, such projections are contingent upon favorable regulatory developments and broader market adoption.
Investors are advised to exercise caution and stay informed about ongoing regulatory discussions and macroeconomic factors that could influence the cryptocurrency landscape in the coming months.
