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Bitcoin has suffered a steep decline, reaching its lowest level since November and triggering a broader market downturn that has erased nearly half a trillion dollars from the cryptocurrency sector in recent days.
The world’s most prominent digital currency dropped below $89,000 on Tuesday, just a month after hitting a record high of over $108,000. Its peak coincided with Donald Trump’s inauguration, during which he pledged to become the first "bitcoin president." However, the recent downturn has been partially attributed to Trump’s administration, as it has yet to implement any significant pro-crypto measures nearly a month into his presidency.
“The new Trump administration has expressed strong support for cryptocurrencies, but the industry is still waiting for concrete actions, such as the proposed Bitcoin Strategic Reserve,” said Petr Kozyakov, co-founder and CEO of crypto payment infrastructure firm Mercuryo, in an interview with The Independent.
Adding to the turmoil, the crypto market was further shaken by a major hack on the Bybit platform last Friday, which has been labeled the "largest digital heist ever." Hackers managed to steal approximately $1.5 billion (£1.2bn) by breaching an Ethereum wallet controlled by the Dubai-based exchange.
Following the attack, Ethereum’s value plunged more than 15%—more than twice the percentage loss of Bitcoin—while other major cryptocurrencies like Solana and XRP also experienced significant declines.
Since its launch in 2009, Bitcoin has remained the most valuable cryptocurrency, often compared to precious metals due to its limited supply. However, despite its growing status, industry experts argue that the latest sell-off highlights its ongoing volatility and suggests that investors do not yet view it as a true "digital gold."
“The crypto market is undergoing a reality check as Bitcoin tumbles below $89,000 amid weakness in the US stock market,” Kozyakov added.
“Rather than being a central pillar of the financial world, Bitcoin continues to be seen as a highly speculative asset, quickly sold off at the first sign of trouble.”
