Bitcoin plunges as traders reverse bets

Bitcoin dropped as much as 7.2% on Friday to $78,226, marking a 28% decline from its all-time high of $109,241 on January 20, Inauguration Day.

The crypto traded below $80,000 for the first time since November.

Though it recovered slightly later, the digital currency declined 18% in February, its worst monthly drop since June 2022. Other cryptocurrencies, including Ether, Solana, and XRP, also suffered steep losses.

The drop comes after President Donald Trump reaffirmed his tariff plans—25% on Canada and Mexico starting March 4, plus an additional 10% levy on Chinese imports on top of the existing one. 

These trade tensions hit global markets, and BTC was one of the hardest hit. It also fell below key levels traders watch, making some believe it’s oversold.

Investors pulled $3.3 billion from US Bitcoin exchange-traded funds in February, the biggest withdrawal since they launched.

On Tuesday alone, crypto traders pulled out $1 billion, the largest one-day outflow since the BTC entered Wall Street.

Trump has made moves that crypto supporters like, claiming he wants the US to be a “Bitcoin superpower.”

However, some experts warn that the digital currency could drop further if market fears continue.

The S&P 500 declined this week after weak US consumer confidence data raised fears about economic growth, further pressuring risk assets, including crypto.

Apart from tariffs, inflation fears are making investors cautious of digital assets.