The recent collapse of the Bitcoin price has been nothing short of staggering

After peaking at $109,000 around the time of President Donald Trump’s inauguration, optimism fueled by his pro-crypto rhetoric quickly faded.

The recent collapse of the Bitcoin price has been nothing short of staggering. After peaking at $109,000 around the time of President Donald Trump’s inauguration, optimism fueled by his pro-crypto rhetoric quickly faded.

According to Petr Kozyakov, Chief Revenue Officer at Mercuryo, the cryptocurrency slid to $86,605, a three-month low, triggering a 7.9% drop in a single day.

This downturn also saw major fib levels breached on the 4H chart, and with 20% of its value wiped out since its all-time high, reached in August 2027, Bitcoin now trades at $86,000.

As Trump’s administration came to an end, so too did the hopes of a Bitcoin Strategic Reserve and a massive $1.5 billion hack at the Bybit exchange, leading to a 15% decline in the price of Bitcoin.

The former president’s administration had threatened to impose tariffs on Canada, Mexico, and China, set to take effect in March, sparking inflation fears and reducing the chances of Federal Reserve rate cuts.

This development drove investors away from speculative assets such as Bitcoin, which is known for its high volatility.

Following Bitcoin’s downturn, Ethereum and XRP also experienced declines of 15% and 5%, respectively, while Solana-based memecoins took an even bigger hit, with some analysts attributing the market’s woes to the scandals surrounding these coins.

Geoff Kendrick, an analyst at Standard Chartered, expressed concern over the Bitcoin price, highlighting that it could slide further into the low $80s.

Kendrick advised caution against buying the dip just yet, as the market trends indicate that the price may fall even lower.

The turmoil in the crypto market has exposed Bitcoin’s vulnerability as a risk-on asset, rather than the “digital gold” that many had hoped for.

Kozyakov described it as a “heliocentric reckoning,” adding that despite its finite supply, Bitcoin remains on the periphery of the financial universe, easily rattled by macroeconomic shifts.

This view was supported by the $539 million outflow from Bitcoin ETFs on Monday, which showcased the broader flight from risk.

As traders adjust to the changing market landscape, they are searching for new opportunities and pivots amid the chaos.