Bitcoin fell below the $80,000 mark for the first time since November, driven by increasing macroeconomic uncertainty and Trump's proposed tariffs.
Bitcoin Drop and Causes
On February 27, Bitcoin plummeted to $79,752 according to TradingView data. The price declined by 2.65% over the past hour, leading to $80.28 million in long positions being liquidated, as per CoinGlass data. Many analysts point to macroeconomic uncertainty and potential tariffs proposed by US President Donald Trump as key reasons behind the Bitcoin and broader crypto market decline.
Market Reaction and Consequences
Since Trump's inauguration on January 20, when Bitcoin hit an all-time high of $109,000, the asset has dropped nearly 26%. The decline was also accompanied by significant liquidations of long positions in the crypto market.
Historical Context and Forecasts
Bitcoin last traded at $79,752 on November 11, shortly after Trump was elected US President, amid optimism regarding his crypto-friendly policies leading to a Bitcoin rally in 2025.
This event illustrates the impact of global economic policies on the cryptocurrency market. Buyers and investors anticipate further actions that may affect future Bitcoin prices and other crypto assets.
