Abdelrahman
Bitcoin (BTC-USD) experienced a significant decline of nearly 5% early Friday, settling just above $82,000—marking its lowest point since early November.
As of 3:10 PM UTC. Market is open.
This latest drop represents a nearly 20% decrease for Bitcoin over the past month, marking its worst monthly performance since June 2022.
The downturn follows President Donald Trump’s announcement that new tariffs of 25% on imports from Canada and Mexico, along with an additional 10% tariff on Chinese goods, are scheduled to begin on March 4.
Financial analyst Nic Puckrin, who is also the founder of The Coin Bureau, noted in an email to Yahoo Finance that the recent sharp sell-off in cryptocurrency markets is a clear indication that Bitcoin and various altcoins are being heavily influenced by political factors.
“Originally, Bitcoin was intended to function as an apolitical asset, yet political dynamics seem to have taken a significant role,” he added.
Since Donald Trump took office, Bitcoin has witnessed a substantial rally, gaining 44% from election day in November to a peak of $109,115 on January 19. Investors have shown confidence in the president’s supportive stance towards cryptocurrency, anticipating a less restrictive regulatory environment than seen under the previous administration. Trump also recently designated venture capitalist David Sacks for a new position as crypto advisor in the White House, and nominated well-known cryptocurrency attorney Paul Atkins to lead the SEC.
However, Bitcoin’s recent losses have offset many of those gains, as the anticipated Trump trade starts to lose momentum. Increased macroeconomic uncertainty and issues like a significant $1.5 billion hack of a cryptocurrency exchange have also made investors more cautious.
·
REUTERS / Reuters
Puckrin mentioned in his February 25 commentary, “Should tariff-related concerns escalate, Bitcoin may see further declines in the short term,” noting, “A critical support level to monitor would be $71,000.”
Other cryptocurrencies faced milder declines on Friday, with Coinbase slipping 1.3% and Riot Platforms dropping 1.6%. Strategy, the largest corporate Bitcoin holder, fell by less than a percentage point.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. You can also reach her at laura.bratton@yahooinc.com.
Get the latest financial and business updates from Yahoo Finance
