Bitcoin’s Value Dips Below $90,000
Bitcoin has experienced a significant drop, falling beneath the $90,000 USD threshold, with its current value hovering around $87,050.81 (£68,748.49) as of 3:15 PM GMT. This marks its lowest price since mid-November, representing a staggering decline of nearly 20% from its peak. The most popular cryptocurrency reached an unprecedented value of $109,114 (£86,191.88) on the day of President Donald Trump’s inauguration, January 20. This sharp decrease in value coincides with a larger selloff across the cryptocurrency market that has gained traction in recent hours. Bitcoin alone has suffered a 7.5% decrease in just the past 24 hours, marking the most significant dip during Trump’s presidency thus far. This downturn is particularly notable given the recent bullish trends attributed to Trump’s pro-cryptocurrency stance.
Major Cryptocurrencies Hit Hard
The downturn in Bitcoin’s value is part of a broader trend affecting other major cryptocurrencies, many of which have experienced even steeper declines. Ethereum, the second-largest cryptocurrency, has seen a drop of over 11% in the last day, with its value now at $2,390. The market selloff has been particularly harsh, impacting various digital assets significantly. XRP, associated with Ripple Labs, has fallen by 14.3%, while Binance’s BNB token has decreased by 6.4%. Solana’s SOL has also taken a hit, plunging by 15%. The ongoing uncertainty in the market is prompting investors to reassess their strategies.
Factors Behind the Market Downturn
Several elements have contributed to the recent turmoil in the cryptocurrency market. A significant security breach at the Bybit exchange has shaken investor confidence, with hackers reportedly stealing $1.5 billion in what is being referred to as the largest digital theft in history. Additionally, controversies surrounding memecoins have further diminished trust within the sector, especially following the Trump family’s introduction of their own coins last month. The cryptocurrency market had previously thrived during Trump’s tenure—until now.
Market Sentiment Affected by External Events
“The Bybit incident is just the latest in a series of unsettling occurrences, including dubious memecoin launches, that have rekindled negative feelings among cryptocurrency investors,” remarked Caroline Mauron, co-founder of Orbit Markets. A scandal involving Argentina’s President Javier Milei and memecoins has also contributed to the bearish outlook among market participants. Compounding these issues are rising concerns about a potential trade war, which have led to fluctuations in the stock market over the past month. Tech stocks have particularly borne the brunt of this volatility, with Nvidia experiencing a decline of over 3% on Monday and Palantir losing nearly 29% of its value since hitting a record high just last week.
Impact of Trump’s Policies on Market Stability
Analysts suggest that tariffs imposed by Trump have further fueled market anxiety, impacting both cryptocurrency and traditional stock markets. David Morrison, a senior market analyst at Trade Nation, noted, “US stock index futures were weaker in early trading today.” He elaborated that the decline reflected the continued softness in prices from the previous day, which was predominantly driven by tech stocks. Initially, US stock indices showed some strength on Monday morning but faced a selloff as trading commenced. The markets rallied later in the day, only to retreat again before closing. Notable losses were observed among major tech companies, with Nvidia down over 3% for the day and an additional 1% the following morning. The chip manufacturer has now seen a decline of over 8% since Thursday’s market close. Palantir, another tech favorite, has similarly suffered, plummeting 29% since reaching an all-time high just a week ago.
