Bitcoin Collapses Below $80,000 Level... Sharp Decline Just Over a Month After Trump's Inauguration [Comprehensive]
Summary
- It was reported that Bitcoin prices fell below $80,000 for the first time since November last year.
- Economic instability related to President Donald Trump's policies was identified as a major cause of the Bitcoin price decline.
- It was reported that investors are expecting President Trump's cryptocurrency support policies and specific measures.
First Time Since November Last Year
The price of the virtual asset Bitcoin has fallen below $80,000. This is the first time Bitcoin's price has dropped below $80,000 since November last year.
According to cryptocurrency exchange Coinbase, as of 2 PM Korean time on the 28th, Bitcoin's price is at $79,829, down 5.88% from 24 hours earlier.
The current price represents a sharp 27% drop from the all-time high ($109,191) recorded on January 20th, the day before Donald Trump's presidential inauguration.
Bitcoin's price fell to the $90,000 level immediately after President Trump's inauguration, then moved sideways for a while before continuously declining since the 25th of this month.
Analysts suggest this downward trend is related to President Trump's expansion of tariff fronts.
President Trump announced yesterday that if the synthetic drug problem flowing into the United States is not resolved or significantly improved, he will implement the suspended 25% tariffs on Canada and Mexico as scheduled from March 4th, and impose an additional 10% tariff on China on the same day.
ING said in a memo to clients on the 27th, "We expect U.S. tariffs to take center stage again and continue to push up the value of the dollar."
Stefan von Haenisch, Asia-Pacific head of cryptocurrency trust company BitGo, told Bloomberg, "It's not surprising to see where we are now given the macroeconomic conditions," adding that investors are still waiting for President Trump, known to support virtual assets, to introduce specific measures including Bitcoin strategic reserves.
Although positive measures for the cryptocurrency market have emerged since President Trump's inauguration, such as appointing virtual asset advocates to key positions and the Securities and Exchange Commission (SEC) concluding investigations into several cryptocurrency companies, their impact as catalysts has not been significant.
Some analysts suggest that today's decline is an extension of the sharp drop in Asian markets following President Trump's tariff comments.
The MSCI Asia-Pacific index is currently down about 2%.
Choi Su-jin, Hankyung.com reporter naive@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
