Bitcoin has recently experienced a significant decline, with its price falling below $80,000 for the first time in over three months. As of now, Bitcoin is trading at approximately $79,403, reflecting a decrease of $6,551 (or about 7.62%) from the previous close.
Several factors have contributed to this downturn:
1. Macroeconomic Uncertainty: Global investors are expressing concerns over potential U.S. tariffs and economic policies under President Donald Trump's administration. The anticipation of a 25% levy on imports from Canada and Mexico has heightened market unease, leading to a broader risk-off sentiment among investors.
2. Major Security Breach: The cryptocurrency market's confidence was further shaken by a significant security breach. Last week, the Bybit exchange suffered a hack resulting in the theft of approximately $1.5 billion worth of Ether. This incident has raised serious concerns about the security of digital assets and has contributed to the recent sell-off in the crypto market.
3. Regulatory Ambiguity: Despite initial optimism following President Trump's election, the anticipated pro-crypto regulatory framework has not materialized. The lack of clear policies and strategic initiatives, such as the establishment of a bitcoin reserve, has led to fading enthusiasm and increased uncertainty among investors.
