Bitcoin Dips Below $80K, Reflecting Eroded Gains Post-Trump Election Amid Rising Uncertainty
Bitcoin dropped below $80,000, reversing post-Trump gains amid macroeconomic uncertainty and tariff fears, triggering significant market liquidations, though some analysts see this as a normal correction within a bullish trend.
Bitcoin (BTC) has fallen below the $80,000 mark for the first time in over three months, reversing nearly all the gains achieved following Donald Trump’s election. This economic downturn is linked to growing macroeconomic uncertainty, especially concerning Trump’s proposed tariffs.
On February 27, Bitcoin’s value dropped to $79,752, based on TradingView data. This represents a notable 26% decline from its peak of $109,000, which was reached shortly after Trump’s inauguration on January 20. Analysts attribute the price decline to fears surrounding potential trade restrictions and their subsequent economic ramifications.
Bitcoin Market Reactions and Liquidations
The abrupt decline in Bitcoin’s value triggered significant liquidations, with more than $100 million in long positions eliminated within just an hour, as reported by CoinGlass. Many traders had considered the $82,000 mark a critical support level. However, as the price slipped below this threshold, it led to further losses.
Some analysts suggest that this bearish trend might persist. Crypto trader dmac expressed concerns on social media, stating, “Dip buyers are getting smoked. I still see $70k as the target.” Another trader, known as Mandrik, remarked, “If you liked $80k Bitcoin, then you’re gonna love $70k Bitcoin.”
Despite the marked pullback, not all analysts are pessimistic. Crypto trader Rager pointed out that such corrections are a normal occurrence in bullish markets, saying, “Pretty normal in prior cycles, even during bull markets, for Bitcoin to drop -30% to -40%.”
Institutional Outlook Remains Positive
Despite the recent fluctuations, institutional investors maintain a positive outlook for Bitcoin’s future. Geoffrey Kendrick, head of digital assets research at Standard Chartered, reiterated his optimistic projection. He, however, suggested that Bitcoin could potentially reach $200,000 by year-end.
Geoffrey Kendrick further indicated that under favorable conditions, the cryptocurrency might soar to $500,000 before the conclusion of Trump’s second term.
Although the short-term sentiment is mixed, the long-term direction of Bitcoin remains a matter of discussion. Traders are closely monitoring crucial support levels and global economic developments for insights into future movements.
The upcoming weeks are poised to reveal whether Bitcoin will stabilize or continue its downward trajectory. As the cryptocurrency market responds to evolving economic policies, investors must remain vigilant and ready for potential volatility.
