Crypto Decline Continues as Bitcoin Hits Lowest Level Since November
Cryptocurrencies continue their sharp decline amid escalating economic concerns,
with Bitcoin plunging to its lowest level since November,
impacted by trade tensions and U.S. economic policies.
Topic
Economic Pressures
The cryptocurrency market has extended its sharp downturn,
with Bitcoin dropping to its lowest level since November due to mounting concerns over the impact of tariffs imposed by the U.S. administration.
These fears have overshadowed recent positive statements from former President Donald Trump regarding support for digital assets.
Risky assets like cryptocurrencies are under significant pressure, as investors shift towards safe havens such as U.S. Treasury bonds amid fears that tariffs and recent economic measures could slow down growth in the world’s largest economy. While initial optimism followed Trump’s announcement of plans to establish a strategic cryptocurrency reserve, market sentiment quickly turned negative as aggressive sell-offs were triggered by worsening macroeconomic conditions.
Widespread Decline
Bitcoin tumbled 6.8% to $77,416, marking its lowest point since November 10. Other cryptocurrencies, including Solana, Cardano, and XRP—coins that Trump previously mentioned as potential assets for the U.S. digital reserve but were not included in his executive order—also suffered sharp declines.
Stocks linked to the crypto sector were hit hard as well. Coinbase Global plummeted 18%, recording its biggest drop since July 2022, while Michael Saylor’s Bitcoin-focused firm saw a 17% loss. Despite Trump’s pro-crypto stance, including his executive order to create a Bitcoin reserve in the U.S. and maintain separate holdings for other tokens, the lack of new financial commitments has disappointed investors and weakened market momentum.
Bitcoin’s Future
Currently, the U.S. government holds approximately $17 billion in Bitcoin and around $400 million in various other cryptocurrencies,
mostly obtained through asset seizures in civil and criminal cases.
However, analysts argue that the lack of clarity on how these assets will be managed has negatively impacted investor confidence.
Some market observers believe that the Trump administration appears to be favoring specific assets based on lobbying groups,
further increasing uncertainty in the crypto market.
Since February, investors have pulled a net $4.4 billion from U.S.-traded Bitcoin exchange-traded funds (ETFs),
which played a key role in Bitcoin’s rise to record highs last year.
Analysts predict that Bitcoin could trade between $70,000 and $80,000 in the coming weeks.
They also suggest that a potential market recovery will depend on the resolution of the trade tariff dispute
and the Federal Reserve resuming interest rate cuts.
Crypto Decline Continues as Bitcoin Hits Lowest Level Since November