FameEX Hot Topics | Bitcoin Loses Most of Its Trump Election Gains, Plummets Below $80K

Bitcoin has dropped below $80,000 for the first time since November, driven by growing macroeconomic uncertainty surrounding US President Donald Trump’s proposed tariffs. On February 27, Bitcoin (BTC) fell to $79,752, marking a 2.65% decline within an hour, according to TradingView data. This sharp drop resulted in $100.01 million worth of long positions being liquidated, as reported by CoinGlass. The last time Bitcoin traded at this level was on November 11, shortly after Trump’s election, when optimism about his pro-crypto policies fueled expectations of a Bitcoin rally in 2025.

In recent days, many crypto traders had identified $82,000 as a potential support level for Bitcoin. However, the latest price action has shifted focus, with some analysts now predicting a further decline toward $70,000. Crypto trader dmac commented on February 27 via an X post, “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, stating, “If you liked $80k Bitcoin, then you’re gonna love $70k Bitcoin.”

Despite the bearish outlook, some traders remain unfazed by the current market conditions. Pseudonymous crypto trader Rager told their 201,500 X followers 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 suggests that such corrections are typical during Bitcoin’s price cycles, even in bullish trends.

The crypto community appears divided on Bitcoin’s next move, according to data from predictions platform Polymarket. In a February 27 X post, 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 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.

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