Bitcoin (BTCUSD) has dropped to around $81,000, marking a significant decline from its January peak. The cryptocurrency is now in bear market territory, having fallen over 20% from its record high of approximately $109,000. This downturn follows President Donald Trump’s announcement of tariffs on Mexico, Canada, and additional levies on China, which investors fear could slow growth and increase inflation. Such economic conditions may reduce the appeal of non-yielding assets like bitcoin. Cryptocurrency-linked stocks are also declining, with companies like Coinbase Global (COIN), MARA Holdings (MARA), and Robinhood (HOOD) experiencing losses. Riot Platforms (RIOT) initially dropped but rebounded to a 2% gain. Strategy (MSTR), formerly MicroStrategy, fell slightly despite announcing a $2 billion expansion of its bitcoin holdings. Meanwhile, regulators are reversing Biden-era crypto enforcement actions, with the SEC recommending the dismissal of a lawsuit against Coinbase and indicating Robinhood will face no penalties over its cryptocurrency business. — news from Investopedia
