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Bitcoin has lost sharply in value, falling 25% from the record high it reached on 20 January after Donald Trump was elected US president. In February, the cryptocurrency lost more than 20% of its value, which could be the worst monthly drop since June 2022. This is reported by Bloomberg.
Sharp market decline
As of 12:05 a.m. local time in Singapore on 28 February, bitcoin fell by 5.5% to $79,627, the lowest level since 10 November.
At 7:00 a.m. in London, the cryptocurrency fell even further, by 5.8% to $79,363. Thus, since reaching an all-time high of $109,241 on 20 January, bitcoin has fallen by more than 25%.
Other cryptocurrencies also suffered significant losses:
✔ Ethereum (ETH) – down 7.3 per cent
✔ Solana (SOL) – minus 7.1%.
✔ XRP – losses of 7.8%.
What caused the drop?
High expectations after Trump’s victory: The market surged after Trump’s election, as he is seen as a supporter of cryptocurrencies. However, investors are now questioning his real steps to support the sector.
General concern about the US economy: Trump’s recent statements on tighter economic policy are causing uncertainty among investors.
Massive outflow of funds from bitcoin funds: On Tuesday, investors withdrew more than $1 billion from US exchange-traded funds trading in bitcoin. This is the largest single-day capital outflow since their launch in 2023.
“Traders are still waiting for Trump to take concrete steps, such as creating a bitcoin reserve,” said a representative of cryptocurrency company BitGo Inc.
What’s next?
If the trend continues, February will be the worst month for bitcoin in the last year and a half.
Nevertheless, the cryptocurrency market remains extremely volatile, and the bitcoin rate may change depending on future US political decisions.
