Bitcoin fell below $88,000, its lowest since November 14th, as concerns over a slowing US economy, rising inflation, and Trump’s aggressive trade policies shook investor confidence.
Bitcoin tumbles to over three-month low
The cryptocurrency had been riding a wave of optimism prior to Trump's January inauguration, as investors hoped his crypto-friendly stance would foster market growth. However, this initial optimism has now faded, with Bitcoin dropping about 20% since his assumption of office, reflecting broader market apprehensions.
Other major cryptocurrencies, including Ether and Solana, also saw declines, with the broader crypto market following Bitcoin's lead. Bitcoin ETFs, in particular, experienced record outflows of nearly $1 billion in February, signaling growing unease among institutional investors. Industry-specific issues, such as the $1.5 billion Bybit hack linked to North Korea, further compounded concerns over the security of digital assets. This high-profile breach has raised alarms over the vulnerabilities within the crypto ecosystem and how easily malicious actors can exploit these platforms.
What hit the king of cryptocurrencies
In addition, the poor performance of Trump-related memecoins, which had previously attracted speculative investment, further undermined sentiment. Analysts warn that increasing cyber threats, along with mounting regulatory uncertainty, are contributing to a loss of trust in digital platforms. The situation has been exacerbated by the broader sell-off in risk assets, as investors, nervous about geopolitical tensions and inflationary pressures, turn to safer options like bonds. With the regulatory landscape still in flux and the risk of further cyberattacks looming, many in the crypto space are reassessing their positions, leading to increased volatility across the market.
