Bitcoin’s week-long slide has intensified, falling as much as 7.2% at one point to $78,226 before paring losses. The world’s largest cryptocurrency has declined 28% from its all-time high of $109,241 reached on January 20, a dramatic pullback amid market turmoil and growing concerns over U.S. trade policies.
The recent decline in the crypto market comes amid heightened risk aversion in financial markets, triggered by renewed tariff threats from U.S. President Donald Trump. Trump announced that 25% tariffs on Canadian and Mexican goods will come into effect on March 4, along with an additional 10% tax on goods imported from China. Beijing has vowed to take “all necessary measures” in response. Trade tensions have dampened investor sentiment, fueling a sell-off in stocks and risk-sensitive assets, with cryptocurrencies among the hardest hit.
“Some of the big investors said at the end of the day, ‘you know what, I’m giving up now,’” said Zaheer Ebtikar, co-founder of crypto fund Split Capital. “There was definitely a lot more selling than usual, so it’s hard to pinpoint a specific exchange or location.”
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Bitcoin’s decline pushed it below key technical levels that investors have been watching for signs of a potential reversal. BTC fell below its 200-day moving average for the first time since October, while the 14-day relative strength index (RSI) entered oversold territory for the first time since September.
Traders are still waiting for Trump to clarify his crypto policies, including speculation about a potential Bitcoin stockpile, said Stefan von Haenisch, director of over-the-counter trading at crypto custody firm BitGo Inc. “Given the macro environment, it’s not surprising to see where we are,” he said.
Market analysts are warning that Bitcoin could see even steeper losses if sentiment in stocks continues to deteriorate. “The real panic could still be ahead. There’s always another 70%+ crash in Bitcoin’s future,” MLIV Editor-in-Chief Mark Cudmore said in a statement. Cudmore highlighted the $72,000-$74,000 range as a potential technical crisis zone that could trigger another prolonged crypto decline.
Ruslan Lienkha, head of markets at crypto platform YouHodler, suggested that Bitcoin could find support around $70,000, but warned against assuming the worst is over. “We could see that level only if there is a negative sentiment in the equity markets,” Lienkha said.
*This is not investment advice.
