Bitcoin dropped to a 3-1/2-month low on Friday amid uncertainty about U.S. President Donald Trump’s tariff plans and crypto policies. Bitcoin fell over 5% to $79,666, trading below $80,000 for the first time since November 11. Joshua Chu, Co-Chair of the Hong Kong Web3 Association, noted that positive sentiments from a crypto-friendly administration have waned. Since mid-December, Bitcoin has lost a quarter of its value, despite initial optimism about Trump’s crypto-friendly stance. Momentum slowed without fresh policy news, according to Kyle Rodda, senior financial market analyst at Capital.com. Ether, the second-largest cryptocurrency, dropped nearly 6% to $2,149.38, near its lowest since January 2024. Investors withdrew from bitcoin-backed exchange-traded funds amid global economic concerns. Trump’s proposed tariffs on Canada, Mexico, and China have raised fears of inflation and slower growth. Safe-haven U.S. Treasury prices surged, sending yields to three-month lows. The crypto sector was further unsettled by a $1.5 billion hack of Dubai-based Bybit exchange. Blockchain firm Elliptic deemed it possibly the largest known theft. Reuben Conceicao, chief strategy officer at Metasig, cited macro forces like Fed rate cuts, tariffs, geopolitical uncertainties, and the Bybit hack as dampening investor confidence. — news from Reuters
