Bitcoin’s decline deepened on Thursday, falling 25% from its all-time high set less than six weeks ago, as traders reversed their bullish bets in response to growing uncertainty surrounding U.S. economic and political developments. At 9:39 a.m. in Singapore, Bitcoin was down 2.8% at $81,919.70, marking its lowest point since November 11. The broader cryptocurrency market also saw significant losses, with Ether, Solana, and XRP all experiencing sharp declines in recent days.
This downturn highlights the rapid reversal in the fortunes of digital assets, which had surged following U.S. President Donald Trump’s election. Bitcoin reached a record high of $109,241 on January 20, the day of Trump’s inauguration, but has since fallen amid concerns over the President’s confrontational policies and broader fears about the U.S. economy.
The selloff in cryptocurrencies reflects a broader shift in investor sentiment, with many scaling back riskier investments linked to Trump’s election. The S&P 500 also saw a dip this week, following weaker-than-expected U.S. consumer confidence data that raised doubts about the future economic outlook. As a result, traders have re-evaluated their positions across various markets, contributing to the deepening crypto rout.
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