Bitcoin has plunged below $80,000, extending a broader cryptocurrency selloff that has wiped out $1 trillion from the market. The leading digital asset is now down 25% from its December all-time high of nearly $110,000, raising fears of further losses. Crypto market volatility has intensified due to economic uncertainty, global conflicts, and concerns over U.S. trade policies under President Donald Trump.
Market Turmoil and Investor Anxiety
Bitcoin’s sharp decline follows a week-long downturn, pushing it to a three-month low. The drop has erased gains made after Trump’s election victory in November 2024, when optimism around his pro-crypto stance fueled a rally. However, investor sentiment has shifted, driven by fears over Trump’s proposed tariffs, economic instability, and geopolitical tensions.
Market analysts caution that Bitcoin could fall further if negative trends persist in equity markets. Ruslan Lienkha, chief of markets at YouHodler, predicts Bitcoin’s next support level is around $70,000, depending on broader financial conditions. Markus Thielen, founder of 10x Research, suggests Bitcoin is following a pattern that could see it drop to the low $70,000 range.
Read: Pi Coin Surges 293% Since Launch: What’s Driving the Rally?
Bybit Hack and Global Economic Fears
The crypto market faced another blow after Bybit, a major cryptocurrency exchange, suffered a $1.5 billion hack—one of the largest in history. This incident further rattled investors already dealing with inflation concerns and uncertainty over U.S. monetary policy.
“The Bybit hack has added to market instability,” said Jeff Mei, COO of BTSE. “Macroeconomic concerns, including inflation and the Federal Reserve’s decision to pause interest rate cuts, are weighing heavily on sentiment.”
Trump’s Crypto Policies and Market Outlook
Despite the downturn, some investors remain optimistic about regulatory developments under Trump’s administration. The president recently signed an executive order promoting cryptocurrency advancements and launched a national digital asset stockpile. Additionally, his administration has created a crypto task force, including a “crypto czar”, to establish a clearer regulatory framework.
According to Geoffrey Kendrick, head of digital assets research at Standard Chartered, Bitcoin could still surpass $200,000 in 2025 if institutional adoption and regulatory clarity improve.
What’s Next for Bitcoin?
As of early trading in Asia, Bitcoin is hovering around $80,500, down 3.45% for the day. Investors are closely watching support levels and macroeconomic developments to gauge whether the market can stabilize or if deeper losses are ahead.
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