Bitcoin has fallen below the $90,000 USD threshold, trading at approximately $87,050.81 (£68,748.49) around 3:15 PM GMT. This marks its lowest price since mid-November and represents a significant decline 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 sharp decline in value is part of a larger selloff in the cryptocurrency market that has gained momentum in recent hours. Bitcoin’s price has dropped 7.5 percent in just the past 24 hours, marking the most substantial downturn during Trump’s presidency to date. This decline follows a period of notable gains attributed to Trump’s pro-cryptocurrency stance.
### Other Cryptocurrencies Face Steeper Declines
In addition to Bitcoin, other significant cryptocurrencies have experienced even more severe losses. Ethereum, the second-largest digital asset, has fallen more than 11 percent in the last 24 hours, now trading at $2,390. The selloff has been particularly harsh across the entire crypto landscape. XRP, associated with Ripple Labs, plummeted by 14.3 percent during the same timeframe. Binance’s BNB token decreased by 6.4 percent, while Solana’s SOL experienced a notable drop of 15 percent.
### Factors Contributing to the Market Downturn
Several elements have fueled the dramatic decline in the cryptocurrency market. A major security breach at the Bybit exchange has significantly shaken investor confidence, with hackers stealing $1.5 billion in what is being termed the largest digital heist in history. Additionally, issues surrounding memecoins have further diminished trust within the sector, particularly after former President Trump and Melania Trump launched their own coins last month. The crypto market had previously thrived under Trump’s leadership, but this recent turn of events has put it at risk.
### Market Sentiment and Broader Economic Concerns
“The Bybit hack is just the latest incident in a series of troubling events, including dubious memecoin launches that have rekindled negative memories for those involved in the crypto market,” stated Caroline Mauron, co-founder of Orbit Markets. Furthermore, a scandal involving Argentina’s President Javier Milei and memecoins has added to the negative sentiment among investors. Concerns about a potential trade war have also contributed to the fluctuations seen in the stock market over the past month. Tech stocks, in particular, have been adversely affected, with Nvidia experiencing a decline of over three percent on Monday and Palantir seeing a staggering 29 percent drop in value since it reached its all-time high just last week.
### Ongoing Market Volatility
David Morrison, a senior market analyst at Trade Nation, commented, “US stock index futures were weaker in early trading today.” The stock market has shown volatility since Trump’s return to office. “The decline reflects a continuation of yesterday’s weaker price trends, primarily driven by tech stocks. US stock indices were initially stable on Monday morning, but they fell as the main exchanges opened for trading. Although there was a brief rally later in the afternoon, selling resumed toward the close of the market, with significant losses among major tech companies. Nvidia dropped over three percent that day and fell another one percent this morning. The generative chip maker has now seen an eight percent decline since last Thursday’s close. Palantir, another tech favorite, is also facing challenges; it was trading at an all-time high just a week ago but has since experienced a 29 percent loss in value.”
