The price of Bitcoin has dropped below $80,000 for the first time since the onset of the bull run in November 2024, causing anxiety and panic in the crypto market.
Market Situation
Bitcoin is currently trading near $79,400 according to market data, akin to its value before the U.S. presidential elections when Donald Trump won. The BTC price had spiked above $100,000. However, the recent 7.5% drop over the past 24 hours has led to market panic.
Impact of Tariff Policies
The recent sell-off is associated with diminishing confidence in cryptocurrencies amid President Trump’s tariff policies. Tariffs are set to start next week on Canada and Mexico, with an additional 10% on China. This coincides with increased global stock market pressures, exacerbating the situation.
Prospects for Recovery
Crypto trader Jason Pizzino noted that Bitcoin is testing a major 50% level, which could indicate potential recovery. This may serve as a significant support for Bitcoin during the post-rally correction phase.
The decline in Bitcoin's price has set the stage for market speculation. Participants hope for recovery despite increasing regulation and tariff pressures.
