Bitcoin fell below $80,000 on Friday for the first time in over three months as the ongoing sell-off in the cryptocurrency sector gathered pace amid volatility in global markets.
The world’s leading digital currency dropped to a low of $79,525.88 during early Asian trading, marking its lowest value since November 11.
This sharp decline comes after Bitcoin had surged to an all-time high of over $109,000 just last month.
The cryptocurrency experienced a remarkable surge following Donald Trump’s election victory in November, fueled by his campaign promises to ease crypto regulations and turn the United States into a leading hub for digital assets.
Initially, Bitcoin’s rally reflected the gains seen across global markets, but investor sentiment has turned in recent weeks.
This shift is attributed to Trump’s aggressive trade policies, including imposing tariffs on trade partners and the looming risk of a global trade war.
Additionally, his commitments to cut taxes and tighten immigration policies have raised fears of renewed inflation, potentially forcing the Federal Reserve to maintain higher interest rates for a longer period than previously expected.
Recent economic data has also pointed to a slowdown in the US economy, further dampening investor confidence.