Why Is Bitcoin Dropping? How Low Can It Go?

In just eight days, Bitcoin’s value has plunged from $99,000 to $79,000, erasing all the gains fueled by excitement over Trump’s crypto policies. This sudden decline has left many wondering: what triggered it, and how much further could Bitcoin fall?

The Reasons Behind Bitcoin’s Decline

Bitcoin, the leading cryptocurrency, has dropped over 5% in the last 24 hours, hitting a four-month low of $79,263. A major factor behind this decline is the uncertainty surrounding Trump’s potential tax policies on crypto, which has shaken investor confidence.

At the same time, the Crypto Fear and Greed Index has plummeted to 21, the lowest level in almost three years. This reflects widespread anxiety among investors.

Who’s Losing the Most?

The most significant losses have been suffered by short-term Bitcoin traders (STHs), who are selling off their holdings in fear. In the past three days:

Investors who bought Bitcoin this week have lost $927 million. Those who purchased Bitcoin last month are down $678 million. Holders who kept Bitcoin for 1 to 12 months lost $257 million. Even traders who entered the market in the last 24 hours have seen $322 million wiped out.

This mass sell-off indicates a loss of confidence, with many investors rushing to liquidate their assets.

Trump’s Crypto Stance Disappoints Investors

Bitcoin’s decline is partly fueled by frustration over Trump’s crypto policies. Many expected his administration to swiftly introduce pro-crypto regulations, but progress has been slower than anticipated. As a result, assets that surged due to Trump-related speculation are now experiencing selling pressure.

The Ripple Effect: Altcoins Take a Hit

Bitcoin’s drop has affected the entire crypto market, dragging down other major digital currencies:

Ethereum (ETH) declined by 7.5%. XRP tumbled 8.2%. Solana (SOL) shed 9%.

This downward trend suggests that many investors are losing faith in the market.