[Trending News] Bitcoin Slide From All-Time High Hits 28% as Crypto Rout Worsens

(Bloomberg) — A week-long rout in Bitcoin deepened amid the recent broader retreat from risky assets in the wake of US President Donald Trump’s tariff threats and crypto sector turmoil, marking a dramatic reality check for one of the most popular Trump trades.

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The original cryptocurrency tumbled as much as 7.2% to $78,226 at one point Friday, bringing its decline from the all-time high reached less than six weeks ago to 28%. Bitcoin later pared the loss, and ended up trading little changed on the day. Bitcoin fell around 18% in February, the biggest monthly drop since June 2022.

“Some large players just said at the end of the day, ‘you know what, I’m just going to throw in the towel,” said Zaheer Ebtikar, co-founder of crypto fund Split Capital. “I think that’s what we saw this past week. There was definitely a lot of selling more than usual, so it’s hard to pinpoint one specific exchange or place.”

This week’s drop in Bitcoin has taken it to technical levels that many traders watch for signs that the selloff may have gone too far, inspiring dip buyers to step in and at least pause the declines. Bitcoin has fallen below its 200-day moving average, a closely watched indicator of the long-term trend, for the first time since October. Its 14-day relative strength index, a gauge of price momentum, this week fell below a level indicating the asset is considered oversold for the first time since September.

Trump said Thursday that 25% tariffs on Canada and Mexico would come into force from March 4, undermining hopes he might reverse course after a previous delay. He also said Chinese imports would face a further 10% levy, prompting officials in Beijing to promise “all necessary measures” in response.

The focus on trade tensions had led to a broad risk-off decline across markets on Friday, pushing down almost all Asian stock markets and fueling declines in Europe. But cryptocurrencies — which are deeply exposed to shifts in risk appetite — were among the worst hit.

Trump Trade Woes

The selloff underscores a swift change of fortunes for what was previously one of the most popular Trump trades in global markets: buying Bitcoin on the expectation that the president’s crypto-friendly approach would lead to a broad rally.

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