The price of Bitcoin has fallen below 90,000 dollars, reaching its lowest level since mid-November. This decline occurs against a backdrop of a widespread retreat in risk assets, undoing the rally that followed Donald Trump's election as president of the U.S. in January. During the decline, Bitcoin has dropped by as much as 8.5 percent, the largest intraday decrease since August. Coinbase Global Inc. has fallen for the seventh consecutive day and has lost 29 percent in value during this period. An index tracking major digital tokens was heading towards its largest four-day drop since early August.
"The decline in Bitcoin prices is likely related to broader macroeconomic uncertainty that has affected most financial markets in recent days and is linked to the various tariffs announced by President Trump," noted Adrian Przelozny, CEO of the cryptocurrency exchange Independent Reserve. This situation strongly contrasts with the initial momentum following Trump's election and reflects concerns surrounding high inflation and the president's combative stance towards allies and rivals.
A recent hacking attack, allegedly linked to North Korea, resulted in the loss of around 1.5 billion dollars in Ether last week, and the hackers responsible for the theft have begun to launder the money. Companies such as MARA Holdings Inc., engaged in Bitcoin mining, have also experienced declines, reflecting the widespread retreat of risk assets in financial markets.
Confidence in cryptocurrencies has been undermined by a series of negative events, including the hacking of the Bybit exchange platform and the poor performance of "memecoins" launched by former President Trump and his wife Melania. These events have generated uncertainty among investors and negatively impacted the cryptocurrency market as a whole.
One of the consequences of this landscape is the outflow of large sums of money from Bitcoin-related exchange-traded funds and a decrease in bullish bets on cryptocurrencies in recent days. Volatility has remained high, with liquidations of long positions in BTC and significant declines in the value of major cryptocurrencies like Ether, XRP, and Solana.
Money has begun to flow into safe-haven assets, such as Treasury bonds, which has led to a decline in 10-year bond yields. Investors in funds that helped drive the cryptocurrency advance in the past have opted for a more cautious stance, contributing to an underperformance of digital coins compared to other risk assets in recent weeks.
In summary, the cryptocurrency market is in a period of volatility and corrections, influenced by macroeconomic factors, cyberattacks, and scandals surrounding "memecoins." Investors are closely monitoring the evolution of the situation and have begun to reevaluate their investment strategies in this uncertain environment.
