Bitcoin price falls below $80,000 for the first time since November

Bitcoin fell sharply on Friday, dropping below $80000 for the first time since November. The price of the world's largest cryptocurrency declined by more than 5%

Bitcoin price fell sharply on Friday, dropping below the $80,000 level for the first time since November, amid macroeconomic uncertainties and a major hack in the crypto market.

The world’s largest cryptocurrency slid more than 5% to $79,666 by 01:15 GMT.

Bitcoin’s fall comes amid uncertainty over U.S. President Donald Trump’s trade policies and regulatory decisions on cryptocurrency, and concerns among investors after a major hack in rival digital currency ether.

Its value has dropped hugely from a peak above $105,000 hit in mid-December, when investors were optimistic that the Trump administration would introduce favourable policies for the cryptocurrency market, including a strategic bitcoin fund and relaxed regulations.

While some crypto-friendly officials were appointed and the administration showed interest in the sector, no major policy changes have been announced since then.

“Bitcoin falling below the $80k mark shows that the positive sentiments from a crypto-friendly administration and high-profile endorsements have run their course,” Joshua Chu, Co-Chair of the Hong Kong Web3 Association told Reuters.

Market analysts also linked bitcoin’s decline to the broader financial landscape, including a slowdown in the technology sector.

Kyle Rodda, a senior financial market analyst at Capital.com, explained that the cryptocurrency had been affected by the recent drop in major Wall Street tech stocks.

“Momentum ran out when there was no fresh news to keep driving the bullish narrative. Bitcoin, which still trades as a ‘higher beta tech’ play, is being dragged down by the sell-off in Wall Street tech stocks,” he told Reuters.

The second-largest cryptocurrency, ether, also saw a sharp decline, dropping nearly 6% to $2,149.38, its lowest level since January.

Investors have also been withdrawing funds from bitcoin-backed exchange-traded funds, further contributing to the downturn in the market.

Investor confidence has also been affected by global economic concerns. There are signs that the strong performance of the U.S. economy may be slowing, which has made global markets nervous.

At the same time, Trump has announced plans to impose a 25% tariff on imports from Canada and Mexico starting in March, with additional tariffs on Chinese goods also expected. These policies have raised fears of increased inflation and slower economic growth worldwide.

Another factor that has shaken the crypto market is a large-scale hack targeting Bybit, the world's second-largest cryptocurrency exchange after Binance.

On February 21, Bybit confirmed that hackers had stolen ether worth about $1.5 billion. The Dubai-based exchange serves more than 60 million users globally and allows trading of multiple digital currencies, including bitcoin and ether.

According to blockchain research firm Elliptic, this was one of the largest thefts in the history of cryptocurrency.

Reuben Conceicao, chief strategy officer at digital wallet firm Metasig, noted multiple reasons for the market downturn.

"It's a combination of macro forces. The Fed only planning one rate cut, more tariffs, uncertainties around geopolitics and war, and the Bybit hack didn’t help confidence either. It is hard for people to be excited and pump BTC when there are bigger issues at play," he told Reuters.