Bitcoin’s price has plummeted to under $89,000, a sharp drop from its all-time high of over $108,000, resulting in a significant loss for the crypto market. Contributing factors include unmet promises from President Trump and a major hack on the Bybit platform, which has affected the value of Ethereum and other cryptocurrencies. Industry experts suggest bitcoin’s status as a high-risk asset is impacting investor confidence.

The price of bitcoin has sharply declined, reaching its lowest point since November, resulting in a significant downturn within the crypto market, erasing approximately half a trillion dollars in value in recent days. On Tuesday, bitcoin dropped below $89,000, a stark contrast to its all-time high of more than $108,000 just a month prior, which coincided with Donald Trump’s inauguration—when he was referred to as the potential first “bitcoin president.”

This recent decline has been partially linked to President Trump’s unfulfilled promises, as the industry anticipates the actualization of his pro-crypto commitments, such as the proposed Bitcoin Strategic Reserve. Petr Kozyakov, co-founder and CEO of the crypto exchange Mercuryo, remarked that although Trump’s administration has shown verbal support for cryptocurrency, there is a lack of tangible actions to back this.

Adding to the downturn, the Bybit platform experienced a devastating hack described as the “biggest digital heist ever,” during which hackers stole approximately $1.5 billion. Following this, Ethereum’s value suffered a decline of over 15%, surpassing the losses incurred by bitcoin, while other cryptocurrencies such as Solana and XRP also faced substantial decreases.

Despite bitcoin’s status as the leading cryptocurrency and its comparison to safe-haven assets, recent sales indicate it has yet to gain the status of digital gold among investors. Mr. Kozyakov articulated, “The cryptocurrency market is having a heliocentric reckoning as bitcoin slides below $89,000 amid a faltering US stock market.” He emphasized that bitcoin remains on the periphery of the financial universe, regarded as a high-risk asset subject to rapid liquidation in response to market uncertainties.

In summary, bitcoin’s recent price collapse is attributed to a combination of unmet promises from the Trump administration, a significant hack affecting the Bybit platform, and broader market volatility. The response from investors suggests concerns about bitcoin’s stability as a digital safe-haven asset, underscoring its positioning as a high-risk investment. This downturn prompts a reevaluation of bitcoin’s role within both the cryptocurrency ecosystem and the larger financial landscape.

Original Source: www.the-independent.com

Related posts:

Factors Behind Bitcoin’s Recent Price Decline: Market Instability and Hacks Factors Behind Bitcoin’s Recent Price Collapse: Hacks, Political Promises, and Market Volatility Bitcoin’s Price Decline Linked to Trump’s Trade War Announcements Trump Tariffs Ignite Fears of Bitcoin and Crypto Price Collapse