Bitcoin has dropped below the $90,000 mark, currently trading at approximately $87,050.81 (£68,748.49) as of 3:15 PM GMT. This represents the lowest price level since mid-November and a significant decrease of nearly 20 percent from its peak value. The leading cryptocurrency reached an all-time high of $109,114 (£86,191.88) on January 20, coinciding with President Donald Trump’s inauguration. This dramatic decrease in value has occurred during a widespread selloff in the cryptocurrency market that has intensified in recent hours. Bitcoin alone has seen a decline of 7.5 percent in the last 24 hours, marking the most considerable drop during Trump’s presidential tenure to date. This downturn follows a period of considerable gains attributed to Trump’s favorable stance on cryptocurrency.
### Major Cryptocurrencies Also Experience Significant Losses
Other notable cryptocurrencies have faced even steeper declines amid the market turmoil. Ethereum, the second-largest cryptocurrency by market capitalization, has fallen over 11 percent in the past 24 hours, now priced at $2,390. The selloff has been relentless across the wider crypto landscape, with XRP, associated with Ripple Labs, plummeting by 14.3 percent in the same timeframe. Binance’s BNB token suffered a 6.4 percent drop, while Solana’s SOL experienced a hefty decline of 15 percent.
### Factors Contributing to the Cryptocurrency Market’s Downturn
Several elements have driven the significant downturn in the cryptocurrency market. A major cyberattack on the Bybit exchange has severely undermined investor confidence, with hackers reportedly stealing $1.5 billion in what has been labeled the largest digital heist in history. Additionally, controversies surrounding memecoins have further shaken trust within the cryptocurrency sector, particularly following the launch of new coins by President Trump and his wife, Melania Trump, last month.
### Market Sentiment Affected by Recent Events
Caroline Mauron, co-founder of Orbit Markets, commented on the Bybit incident, stating, “The Bybit hack was the latest in a series of troubling events, such as dubious memecoin launches, that have reignited negative memories for those involved in the crypto market.” Furthermore, a scandal involving Argentina’s President Javier Milei and memecoins has added to the bearish outlook among investors. Ongoing worries regarding a potential trade war have also created volatility in the stock market over the past month, particularly impacting technology stocks.
### Broader Market Impact and Tech Stocks
Tech stocks have been particularly hard-hit, with Nvidia experiencing a decline of over three percent on Monday and Palantir losing nearly 29 percent of its value since reaching an all-time high last week. Analysts have suggested that Trump’s tariffs have exacerbated market fears, contributing to declines in both the cryptocurrency and traditional stock markets. David Morrison, a senior market analyst at Trade Nation, noted, “US stock index futures were weaker in early trading today.”
### Recent Stock Market Volatility
The stock market has experienced significant volatility since Trump returned to office. Morrison added, “The decline was a continuation of the softer price movements seen yesterday, primarily driven by tech stocks. Initially, US stock indices appeared stronger on Monday morning but fell as the major exchanges opened. They did see a rally later in the day, though this was followed by another selloff towards the close. Notable casualties among tech giants included Nvidia, which is down over eight percent since Thursday’s close, just ahead of its earnings report tomorrow. Palantir, a favorite among tech investors, has also faced a sharp drop, losing 29 percent of its value since reaching its peak.”
