Bitcoin Drops Below $80,000 Amid Market Turmoil and Trump Policy Uncertainty
Bitcoin has fallen below $80,000 amidst a cryptocurrency selloff wiping out $1 trillion from the market. The decline comes after hitting a three-month low, reversing pre-election gains influenced largely by global economic concerns and conflict. Analysts warn that further declines could be imminent, while some investors remain hopeful due to potential regulatory support under the Trump administration.
Bitcoin’s value fell below $80,000 on Friday, contributing to a widespread cryptocurrency selloff that has resulted in a total market loss of $1 trillion. The cryptocurrency has declined approximately 25% from its peak of nearly $110,000 in December. Analysts are raising alarms about the potential for continued declines, as the digital asset has reached a three-month low after reversing gains achieved following Donald Trump’s election victory in November.
This downward trend coincides with a deterioration in investor sentiment stemming from uncertainty regarding Trump’s proposed tariffs, global economic instability, and ongoing conflicts in Ukraine and Gaza. Ruslan Lienkha, chief of markets at YouHodler, noted that Bitcoin’s next key support level is around $70,000, dependent on the overall market conditions, which have seen U.S. stock indices decline for several consecutive days.
Market analysts are observing a pattern that suggests Bitcoin could reach a low target in the $70,000 range. Meanwhile, a significant security breach at Bybit, a cryptocurrency exchange, which involved $1.5 billion being stolen, has compounded the situation and exacerbated existing concerns over inflation and Federal Reserve policies. Jeff Mei, COO of BTSE, remarked that the market’s volatility is a direct response to the Bybit incident and other macroeconomic factors.
Nevertheless, some investors remain hopeful about the long-term outlook for cryptocurrencies, especially with potential regulatory advancements from the Trump administration. Recent executive orders have been signed to support the cryptocurrency sector, leading to the establishment of a national digital asset stockpile and a regulatory task force. Geoffrey Kendrick, head of digital assets research at Standard Chartered, suggested that Bitcoin could exceed $200,000 this year, supported by trends in institutional adoption and regulatory clarity.
In conclusion, Bitcoin’s recent price decline highlights the volatility in cryptocurrency markets due to global economic factors, investor sentiment, and significant security breaches like the Bybit hack. Despite these challenges, regulatory developments under the Trump administration may provide a framework for potential recovery and growth in Bitcoin’s value. Analysts remain cautious about future price fluctuations as the market grapples with uncertain conditions.
Original Source: tribune.com.pk
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