Bitcoin’s decline intensified on Friday, with the cryptocurrency trading at $78,403, down 8.94% from the previous close.
This marks a significant downturn of over 25% since reaching an all-time high of $109,241 on January 20, 2025.
The sell-off is part of a broader cryptocurrency downturn, with Ether, Solana, and XRP also experiencing sharp declines.
“The last time we saw sentiment like this was 2022,” said Caroline Bowler, chief executive officer of BTC Markets Pty Ltd, referring to the “crypto winter” when prices plummeted amid rising interest rates and industry woes. “This tanking can be viewed as a response to macro fears on Trump’s tariffs and geopolitical uncertainty.”
President Donald Trump announced on Thursday that the United States will implement a 25% tariff on imports from Canada and Mexico, effective March 4, 2025.
This decision follows a previous delay intended to allow for negotiations and increased border security measures.
Additionally, Trump stated that Chinese imports will face an extra 10% levy starting the same day, citing concerns over insufficient efforts to curb illegal drug flows, particularly fentanyl, into the U.S.
Bitcoin has experienced a significant decline of over 20% in February 2025. If this trend continues through the end of Friday, it would mark the largest monthly drop since June 2022.
The recent selloff in Bitcoin highlights a rapid shift in investor sentiment. Initially, many anticipated that President Donald Trump’s perceived crypto-friendly stance would bolster the market, leading to increased investments in Bitcoin.
However, recent policy decisions, particularly the announcement of new tariffs, have introduced significant uncertainty. This has prompted investors to reassess their positions, moving away from riskier assets like cryptocurrencies.
As a result, Bitcoin has experienced a substantial decline, falling over 20% in February 2025, marking its most significant monthly drop since June 2022.
