The price of Bitcoin has dropped below $80,000 for the first time since the onset of bull run in November 2024. The crash in BTC price (around 7.5% in last 24 hours) has led to panic and bloodbath in crypto markets as many expect further downward spiraling of the currency in coming days.
Bitcoin is currently trading near $79,400 as per market data, back to what it was, before Donald Trump won the U.S. presidential elections, riding high on crypto community’s support. BTC price had spiked above $100,000 buoyed by the victory of Trump in December 2024.
The recent sell-off is largely followed by the fast depleting confidence in the crypto market as the President Trump’s tariff policies continue shaking it out, coinciding with increased selling pressure in global stock markets. The inducements of tariffs are starting next week on Canada and Mexico while Trump also plans for an additional 10% tariff on China.
Besides, the recently increased political and regulatory attention on Bitcoin and the crypto industry has tightened tension in the market as various U.S. states are looking to push Bitcoin as a strategic reserve.
Following the drop, Bitcoin’s market cap has deceased from over $2 trillion in January to $1.57 trillion today. The global crypto market has shrinked 6.5% in the past 24 hours with it now sitting at $2.6 trillion.
Since it’s all-time high of $109,114 – marked on 20 January – Bitcoin price has now dropped 27.4% while it declining over 22% alone in the past month.
A crypto trader and investor, Jason Pizzino shares on X that Bitcoin price is currently testing a major 50% level since the U.S. election pump. In trading, the “50% level” is a key threshold where an asset’s price retraces 50% of a prior significant move.
Pizzino suggests that BTC is currently approaching this major retracement of 50% in the post-rally correction phase. This could be seen as a key support for Bitcoin as its next step towards potential price recovery.
Also Read: Bitcoin Drops 11%, But Analyst Predicts Massive Comeback Soon
