Bitcoin dropped to a 3.5-month low on Friday, as uncertainties surrounding President Trump’s tariff plans and crypto policies, coupled with investor concerns following a $1.5 billion hack on rival cryptocurrency Ether, weighed heavily on the market. Trading at $79,666, Bitcoin fell more than 5% and dipped below the $80,000 level for the first time since November 11.
Joshua Chu, Co-Chair of the Hong Kong Web3 Association, noted that Bitcoin’s fall below $80,000 indicates that the earlier optimism fueled by a crypto-friendly administration and high-profile endorsements has dissipated. Since mid-December, when Bitcoin surged above $105,000 on expectations that the Trump administration would support a strategic Bitcoin fund and relax regulations, it has lost nearly 25% of its market value. Despite initial positive signals from a series of crypto-friendly appointments, there has been little new policy news to sustain investor confidence.
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Kyle Rodda, a senior financial market analyst at Capital.com, explained that momentum waned when no fresh news emerged to drive the bullish narrative. Additionally, the sell-off in Wall Street tech stocks has dragged down Bitcoin, which is considered a higher beta tech asset.
Ether, the world’s second-largest cryptocurrency, also fell nearly 6% to $2,149.38—its lowest level since January 2024. Investors have been pulling funds out of Bitcoin-backed exchange-traded funds as well.
Globally, investors are growing wary that the so-called exceptionalism of the U.S. economy is diminishing. Trump has signaled plans to impose a 25% tariff on imports from Canada and Mexico starting in early March, with additional tariffs on China also possible. This uncertainty has driven a flight to safety, as U.S. Treasury yields have fallen to three-month lows.
The crypto market was further rattled when Dubai-based Bybit, the world’s second-largest crypto exchange after Binance, announced on February 21 that hackers had stolen approximately $1.5 billion in Ether. Bybit, which serves over 60 million users, offers trading in multiple cryptocurrencies, and blockchain research firm Elliptic described the incident as likely the largest known theft of its kind.
Reuben Conceicao, chief strategy officer at digital wallet firm Metasig, summed up the situation: “It’s a combination of macro forces. With the Fed planning just one rate cut, more tariffs on the horizon, geopolitical uncertainties, and the Bybit hack, confidence has taken a hit. It’s hard for people to be excited about Bitcoin when there are larger issues at play.”
