Bitcoin has fallen below $80,000 for the first time since November, erasing gains made since Donald Trump’s election amid growing concerns over proposed tariffs.
According to crypto.news price tracker, Bitcoin (BTC) has dropped to the $79,800 range on Feb. 28, marking a 6% decline in the past 24 hours. The drop has raised concerns of further corrections, as many traders had previously targeted $82,000 as a possible support level.
Expectations are now shifting toward a potential slump to the $70,000 range. The drop has caused the total amount of Bitcoin 12-hour liquidations to reach $327 million, with longs taking the heaviest hit, as shown by Coinglass data.
The decline has primarily been caused by macroeconomic uncertainty. Trump’s proposed 25% tariffs on imports from Canada, Mexico, and the European Union have alarmed investors and stoked worries that growing prices may raise inflation.
Although some analysts agree that the tariffs would stimulate domestic manufacturing, market sentiment has shifted to one of risk aversion, with capital flowing into safe-haven assets like the dollar and U.S. Treasuries.
Institutional investors have also been pulling back. U.S. spot Bitcoin ETFs recorded $275 million in net outflows on Feb. 27, bringing total outflows over the past week to $2.7 billion, according to SoSoValue data. This marks a continued reversal from the institutional enthusiasm that helped push Bitcoin to its all-time high of $109,000 in January, shortly after Trump’s inauguration.
Even with the current sell-off, many traders are still hopeful. Sentiment’s Feb. 28 X post revealed a spike in social media references of “buy the dip,” showing sustained retail optimism. Historical patterns, however, indicate that excessive optimism during downturns frequently precedes further declines.
🤷 Traders are showing a very high level of confidence that this dip is 'the one to buy', according to the spike in discussions across X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster. Ideally, we are waiting for this crowd enthusiasm to die down as a signal that enough… pic.twitter.com/nM99sLw4v3
— Santiment (@santimentfeed) February 28, 2025
BitMEX co-founder Arthur Hayes warned on Feb. 28 that Bitcoin remains in a downtrend, forming lower lows. He predicts another sharp drop below $80,000 over the weekend, potentially testing the $70,000 to $75,000 range if Trump fails to advance his budget plans. With the current market conditions, Bitcoin’s short-term outlook remains highly uncertain.
