Bitcoin's Decline Continues! 25% Drop from ATH Level, What is the Bottom Point? Here are the Details

Bitcoin's decline deepened on Friday, falling 25% from its all-time high of $109,588 reached on January 20, the day Donald Trump took office.

Crypto Sales Accelerate as Bitcoin Drops 25% from All-Time Highs

Bitcoin fell to $79,152 with a 5.5% drop, marking its lowest level since November 10th. The decline is part of a broader cryptocurrency market sell-off, with Ethereum down by 7.3%, Solana by 7.1%, and XRP by 7.8%.

Bitcoin rose after Trump's election, as investors bet on his crypto-friendly stance and promises to make the US the "crypto capital of the planet."

However, sensitivity quickly reversed as investors became concerned about Trump's aggressive stance on global trade and broader economic risks.

BitGo Inc OTC trading director Stefan von Haenisch said, "Given the macro environment, it is not surprising to see where we are." He noted that investors are still waiting for a summary of concrete crypto policies, including a possible Bitcoin stockpile for the US under Trump.

More Market Chaos and ETF Outflows

Crypto sales coincided with the escape from risk in Asian markets as investors abandoned stocks following Trump's customs duty announcement, while the 25% customs duty applied to Canada and Mexico will come into effect on March 4th, and imports from China will face an additional 10% tax. In response, the MSCI AC Asia Pacific Index dropped by 2%.

Bearish sentiment also affected U.S. Bitcoin spot ETFs, which saw outflows of more than $1 billion on Tuesday. This has been the largest single-day withdrawal since they were introduced.

How Much Can Bitcoin Fall?

According to Ruslan Lienkha, the market chief at YouHodler, investors are currently watching key support levels identified as a possible base of $70,000. However, he warned against assuming that the market sell-off would pull Bitcoin down so far, saying that the market would need more downward momentum for such a move.

Despite the recent decline, the Trump administration has taken steps in favor of crypto. The team appointed crypto advocates to key positions and the SEC recently signaled a regulatory shift by closing investigations into several crypto firms.