FameEX Hot Topics | Bitcoin Erases Most Trump Election Gains, Falls Below $80K

Bitcoin has fallen below the $80,000 mark for the first time since November, as growing macroeconomic uncertainty surrounding US President Donald Trump’s proposed tariffs weighs heavily on the market. On February 27, Bitcoin (BTC) dropped to $79,752, reflecting a 2.65% decline within just one hour, according to TradingView data. This sudden price movement led to the liquidation of $100.01 million worth of long positions, as reported by CoinGlass. The last time Bitcoin traded at this level was on November 11, shortly after Trump’s election victory, when optimism about his pro-crypto policies fueled hopes for a significant Bitcoin rally in 2025.

In the days leading up to this decline, many crypto traders had identified $82,000 as a potential support level for Bitcoin. However, the latest price action has shifted market sentiment, with some analysts now predicting a further drop toward $70,000. Crypto trader dmac expressed this view in a February 27 post on X, stating, “Dip buyers are getting smoked. I still see $70k as the target.” Bitcoin has not traded at the $70,000 level since November 5, when election polling results appeared favorable for Trump. Pseudonymous trader Mandrik echoed this sentiment, adding, “If you liked $80k Bitcoin, then you’re gonna love $70k Bitcoin.”

Despite the bearish outlook, some traders remain unfazed by the current market volatility. Pseudonymous crypto trader Rager told their 201,500 followers on X that a drop to the mid-to-low $70,000 range would not be unusual. They noted, “Pretty normal in prior cycles, even during bull markets, for Bitcoin to drop -30% to -40%.” This perspective highlights the historical tendency for Bitcoin to experience significant corrections even during broader upward trends, suggesting that the current downturn may be part of a typical market cycle.

The crypto community appears divided on Bitcoin’s next move, according to data from predictions platform Polymarket. In a February 27 post on X, Polymarket stated, “Nearly 50/50 chance it continues its plummet & falls below $70k.” This uncertainty reflects broader concerns about macroeconomic factors, particularly Trump’s proposed tariffs, which many observers cite as a key driver behind Bitcoin’s recent decline. Since Trump’s inauguration on January 20, when Bitcoin hit an all-time high of $109,000, the asset has fallen nearly 26%.

Despite the recent volatility, institutional optimism about Bitcoin remains strong. On February 27, Geoffrey Kendrick, Standard Chartered’s head of digital assets research, reiterated his bullish outlook, predicting that Bitcoin could reach $200,000 this year and surge to $500,000 before the end of Trump’s potential second term. This long-term confidence underscores the belief that Bitcoin’s current downturn may be a temporary setback in a broader upward trajectory. Kendrick’s prediction reflects the growing institutional interest in Bitcoin as a store of value and a hedge against macroeconomic uncertainty, even as short-term market conditions remain challenging.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.