The overall market capitalization of cryptocurrencies has dropped by 7.94%, now totaling $2.62 trillion. Meanwhile, the fear index stands at 21, indicating a state of "extreme fear" among investors.
As of 12:05 PM local time in Singapore (6:05 AM in Ukraine), Bitcoin has fallen by 5.5% to $79,627, reaching its lowest point since November 10. This decline is part of a broader sell-off: Ethereum, the second-largest cryptocurrency by market capitalization, has decreased by 7.3%, while smaller tokens have also suffered losses.
At the time of writing, Bitcoin's price fluctuates around $78.4k.
This drop highlights the rapid shift in the digital asset market, which thrived following Trump's election victory. Bitcoin reached an all-time high of $109,241 on January 20, the day of the inauguration, but has since declined significantly due to concerns regarding his confrontational policies and broader worries about the U.S. economy.
“Given the macroeconomic environment, it’s not surprising that we are where we are,” noted Stefan von Henisch, head of over-the-counter trading in the Asia-Pacific region at crypto firm Bitgo Inc. He stated that traders are still waiting for concrete actions from Trump, who is widely regarded as a supporter of cryptocurrencies, particularly regarding potential Bitcoin accumulation.
The decline is part of a broader retreat from riskier assets among investors in Asia, who have been selling stocks following Trump's recent statements on tariffs. The U.S. President announced that a 25% tariff on imports from Canada and Mexico will take effect on March 4, while Chinese goods will face an additional 10% levy. The MSCI AC Asia Pacific Index has fallen by approximately 2%.