Bitcoin slides below $80,000, now down 25% from all-time highs
What's the story
Bitcoin, the world's largest cryptocurrency, has taken a major hit. On Friday, it plummeted by more than 5% to go below the $80,000 mark for the first time since November. The new low it hit was $79,666.
The decline has been attributed to several factors including uncertainties over US President Donald Trump's trade policies and regulatory decisions on cryptocurrency.
Market impact
Investor confidence shaken by major digital currency hack
Investor confidence in Bitcoin and other cryptocurrencies has also been rattled by a major security breach involving ByBit.
The crypto exchange suffered a hack wherein it lost $1.5 billion worth of Ether.
This comes just days after Bitcoin's value crashed from its mid-December peak when it was trading north of $105,000.
Back then, investors were optimistic about possible favorable policies for the cryptocurrency market from the Trump administration. However, no major policy changes have come since then.
Market analysis
Bitcoin's decline linked to broader financial landscape
Joshua Chu, co-chair of the Hong Kong Web3 Association, told Reuters that "Bitcoin's fall below $80k shows that positive sentiments from a crypto-friendly administration and high-profile endorsements have run their course."
Market analysts suggest Bitcoin's decline is tied to the wider financial landscape, including a slowdown in the tech sector.
Kyle Rodda, a senior financial market analyst at Capital.com, noted the cryptocurrency has been impacted by recent drops in major Wall Street tech stocks.
Crypto downturn
Ether follows Bitcoin's downward trend
Ether, the second-largest cryptocurrency, has also witnessed a major fall of nearly 6% to $2,149.38, its lowest since January.
Reportedly, investors are pulling out funds from Bitcoin-backed exchange-traded funds (ETFs), further deepening the market's fall.
Global economic concerns and fears of a potential slowdown in the US economy's strong performance have also contributed to this.