Investor Confidence Wanes Amid Trump’s Trade Policies and Industry Setbacks
Bitcoin (BTC.X) fell below $90,000 on Tuesday, marking its lowest level since mid-November as a series of economic and industry challenges continue to weigh on the cryptocurrency market. The flagship digital asset dropped as much as 7.6% to trade around $88,997, dragging down other major tokens like Ether, XRP, and Solana.
The decline comes amid increasing uncertainty surrounding President Donald Trump’s trade tariffs, which have rattled financial markets. Since Trump’s inauguration in January, Bitcoin has fallen roughly 20%, reversing the rally that followed his election victory in November. Analysts point to macroeconomic concerns, including inflation and geopolitical tensions, as key factors in the sell-off.
“The fall in Bitcoin prices is likely related to broader macro uncertainty that has hit most financial markets in the last couple of days and is linked to the various tariffs being announced by President Trump,” said Adrian Przelozny, CEO of crypto exchange Independent Reserve.
The downturn has also impacted Bitcoin-related investment funds. The iShares Bitcoin Trust ETF (IBIT), the largest spot Bitcoin fund, saw $158 million in outflows on Monday, while the Fidelity Wise Origin Bitcoin Fund lost nearly $250 million. February has been the worst month on record for U.S.-listed spot Bitcoin ETFs, with over $956 million in withdrawals.
Industry-specific setbacks have further dampened sentiment. A massive $1.5 billion hack on crypto exchange Bybit, reportedly linked to North Korean hackers, has raised security concerns. Meanwhile, the failure of memecoins tied to Trump and his wife Melania—some of which have lost over 80% of their value—has fueled skepticism about his pro-crypto stance.
With growing macro risks and industry turmoil, Bitcoin faces increasing pressure as investors seek stability in traditional markets.
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