Bitcoin Slumps Below $85,000 Amid Global Economic Uncertainty

Bitcoin’s price has fallen below $85,000, continuing its downward trend as traders react to recent economic developments. U.S. President Donald Trump’s announcement of new tariffs on European imports has significantly impacted the cryptocurrency industry.

As of press time, Bitcoin is down 4% in the last 24 hours, trading at $84,600 levels. The broader crypto market has also suffered, with total market cap shrinking 4% following President Trump’s remarks. According to crypto market data, total liquidations have surpassed $765 million in the past 24 hours, adding to the $1.5 billion wiped out on Feb. 25.

Impact on Institutional Investors

According to recent data, the market decline has coincided with the biggest one-day withdrawal from Bitcoin ETFs since their inception. Over $937 million left on Feb. 25, further solidifying the change in institutional investors’ sentiment. This brings the total outflows for the last week to almost $1.5 billion.

“The current sell-offs may be a sign of declining hopes for rapid implementation of pro-crypto policies under the new administration.”

Market Analysis

Since Trump took office in January, Bitcoin has fallen about 20% from its peak of $109,225. The administration’s prioritization of aggressive trade policies has led to a decline in optimistic momentum, followed by the current sell-offs.

Security concerns have also shaken investor sentiment. The market’s liquidity has been depleted by the collapse of the Solana memecoin boom, and concerns over centralized exchange vulnerabilities have been ignited by the unresolved $1.4 billion Bybit hack.

Expert Insights

While some analysts see the correction as a healthy reset, others caution that a decline below $80,000 would lead to yet another round of liquidations, which might send Bitcoin toward $70,000. Traders continue to exercise caution as macroeconomic uncertainty rises, anticipating possible regulatory changes that would re-establish trust in the digital asset market.

Tips for Investors:

  • Monitor market trends and adjust investment strategies accordingly.
  • Diversify portfolios to minimize risk.
  • Stay informed about regulatory changes and their potential impact on the market.

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