Bitcoin’s decline deepened during Asian trading hours on Friday, with the cryptocurrency dropping below $80,000 for the first time in three months.
The sell-off marks a dramatic reversal of the post-election rally that had propelled Bitcoin to a record high of $109,241 on January 20—the day of U.S. President Donald Trump’s inauguration.
By 12:05 p.m. in Singapore, Bitcoin had dropped 5.5% to $79,627, its lowest level since November 10.
The broader cryptocurrency market also suffered losses, with Ethereum (ETH) dropping 7.3%, Solana (SOL) falling 7.1%, and XRP sliding 7.8%.
Market Sentiment Shifts Amid Economic Uncertainty
The recent downturn highlights a sharp shift in investor sentiment.
Bitcoin’s rally following Trump’s election win was driven by optimism that his administration would support the cryptocurrency sector, particularly after he vowed to make the U.S. the “crypto capital of the planet.”
However, enthusiasm has since waned as traders reassess the broader economic landscape and await concrete regulatory measures from the administration.
“Given the macro environment, it’s not surprising to see we are where we are,” said Stefan von Haenisch, director of over-the-counter trading in Asia Pacific at crypto custody firm BitGo Inc.
He noted that while Trump is perceived as pro-crypto, investors are looking for tangible actions such as establishing a Bitcoin stockpile or regulatory clarity.
Source: Coinglass
The sell-off in Bitcoin coincides with a broader risk-off sentiment in Asian markets.
Stocks in the region dropped after Trump announced new trade tariffs, including a 25% levy on imports from Canada and Mexico starting March 4, and an additional 10% tariff on Chinese goods.
Adding to Bitcoin’s woes, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their largest one-day outflow since launching last year, with investors withdrawing more than $1 billion on Tuesday.
The decline in ETF demand has compounded selling pressure on Bitcoin, raising concerns about its near-term trajectory.
Key Support Levels and Investor Outlook
With Bitcoin now down more than 25% from its all-time high, analysts are closely watching key support levels.
Ruslan Lienkha, chief of markets at crypto platform YouHodler, pointed to $70,000 as a potential floor, though he cautioned against assuming the decline will extend that far.
“We will only see this level if negative sentiment dominates the equity markets,” Lienkha stated.
Despite the recent drop, Trump’s presidency has already introduced changes favorable to the crypto industry.
His administration has appointed crypto-friendly officials to key positions, and the U.S. Securities and Exchange Commission (SEC) has closed investigations into several crypto firms in recent weeks.
As reported, cryptocurrency enforcement in the United States may ease under the upcoming administration of Republican President-elect Donald Trump, with regulatory priorities expected to shift.
Speaking at a legal conference in New York, current and former senior government lawyers indicated that while financial fraud cases will still be pursued, the Justice Department’s focus will likely move toward immigration enforcement, a key campaign promise of Trump.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
