Bitcoin has plunged below the $90,000 USD mark, trading at around $89,381 (£70,598) midday on Tuesday, representing its lowest level since mid-November and a steep decline of nearly 20 per cent from its all-time high.
The world’s most valuable cryptocurrency hit a record $109,114 (£86,191.88) on President Donald Trump’s inauguration day on January 20.
This dramatic fall in value comes amid a broader cryptocurrency market selloff that has gathered momentum in recent hours.
Bitcoin’s value has dropped 7.5 per cent in the past 24 hours alone, marking the most significant crash of Trump’s presidency thus far.
Notably, the decline follows a period that had seen substantial gains linked to Trump’s commitments to cryptocurrency.
Other major cryptocurrencies have suffered even steeper declines in the market rout with Ethereum, the second-largest cryptocurrency, plummeted by more than 11 per cent over the past 24 hours, falling to $2,390.
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Bitcoin has taken a hit as investors navigate an uncertain market
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The selloff has been particularly brutal across the broader crypto market. XRP, linked to Ripple Labs, crashed 14.3 per cent during the same period.
Binance’s BNB token dropped 6.4 per cent, whilst Solana’s SOL plunged by a substantial 15 per cent. Several factors have contributed to the cryptocurrency market’s dramatic downturn.
A major hack at the Bybit exchange has severely damaged market confidence, with attackers stealing $1.5billion in what has been described as history’s “biggest digital heist”.
Controversies surrounding memecoins have further eroded trust in the sector, with the US President and his wife Melania Trump’s launching their own coins last month.
The crypto market has benefited from Trump returning to office – until now
Reuters
“The Bybit hack was the latest in a string of events, such as questionable memecoin launches, that have brought back unhappy memories for crypto market participants,” said Caroline Mauron, co-founder of Orbit Markets.
A scandal involving Argentina’s President Javier Milei and memecoins has also contributed to the bearish sentiment among investors.
Ongoing concerns about a likely trade war have also contributed to fluctuations in the stock market over the past month.
Tech stocks have been particularly affected, with Nvidia falling over three per cent on Monday and Palantir losing 29 per cent of its value since reaching an all-time high last week.
Analysts have suggested that Trump’s tariffs have created additional market panic, dragging down both crypto and traditional markets.
David Morrison, a senior market analyst at Trade Nation, shared: “US stock index futures were weaker in early trade this morning.
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The stock market has been volatile since Trump returned to office
Reuters
“The decline was a continuation of yesterday’s softer price action which was led by tech stocks. US stock indices were initially firmer on Monday morning. But they sold off as the main exchanges opened for business.
“They rallied later that afternoon before selling off into the close. There were some notable casualties, particularly amongst the tech majors. Nvidia fell over three per cent on the day, and has lost another one per cent this morning.
“The generative chip maker is now down over eight per cent since Thursday’s close. This comes just ahead of its earnings release tomorrow.
“Palantir is another tech darling that has been clobbered recently. This time last week, the defence-focused, generative AI titan was trading at an all-time high. Since then, it has lost 29 per cent of its value.”
