Bitcoin (BTC) Briefly Dips Below $80,000, Hitting Its Lowest Point Since November 10

This decline comes as the cryptocurrency dropped below its 200-day simple moving average (SMA) on Friday, marking a weekly loss of over 18%.

Bitcoin price fell sharply today and briefly fell below the $80,000 mark, hitting its lowest point since November 10. This decline comes after the cryptocurrency dropped below its 200-day simple moving average (SMA) on Friday, also reporting a weekly loss of over 18%.

Why Is Bitcoin (BTC) Price Falling?

At the time of writing, BTC is currently trading at $80,190 after a 5.75% drop in the past 24 hours.

Other cryptocurrencies are also struggling as the broader cryptocurrency market experiences a downturn.

Ethereum is currently trading at $2,135, reporting a 7.56% decrease in the last 24 hours.

Ripple (XRP) price fell to $2.03, down 6.7%, while Solana’s SOL slipped to $128.02. Even Dogecoin (DOGE) dropped below 20 cents and is currently trading at $0.1886.

Moreover, US stocks have also fallen sharply, and the three major indexes closed in the red. The Dow Jones Industrial Average dropped 0.43%, the S&P 500 lost 1.59%, and the Nasdaq plunged 2.78%. The technology sector led the downturn, and the market value of the seven biggest tech companies plummeted by nearly $550 billion.

Amidst these declines, many traders are wondering: ‘Why is Bitcoin falling?’

Well, the main factor behind Bitcoin’s decline is the ongoing US tariff war with several countries. For instance, President Donald Trump announced on Thursday that he might impose tariffs on Canada and Mexico, starting March 4. Additionally, he may double the 10% tariff on imports from China.

“We expect US tariffs to regain centrality and drive the dollar sustainably higher,” ING said in a note to clients on Thursday.

As a result, the dollar index surged to 107.30, up from Wednesday’s low of 106.15, further contributing to the cryptocurrency’s struggles.

What Is Next For Bitcoin (BTC)

Some remain skeptical, thinking that the recent month-long surge in crypto prices might be losing steam, while others view the pullback as just another phase in the inherent volatility of the crypto market, further influenced by global economic factors.

Prominent figure in the crypto space and BitMEX co-founder Arthur Hayes weighed in on social media, noting that the current downturn is setting “lower lows.” Although he briefly considered increasing his risk exposure this morning, Hayes believes that the price trend indicates another sharp drop, potentially pushing Bitcoin below $80,000, perhaps as early as this weekend. Afterward, he expects the market may stabilize and enter a calmer phase.

Meanwhile, Binance founder Changpeng Zhao (CZ) reassured traders that Bitcoin isn’t dying, despite the recent decline.

It’s important to note that this price drop has also resulted in Bitcoin falling out of the top ten global assets, with Meta Platforms now taking its place.

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