Bitcoin Drops Below $85,000, Cryptocurrency Market Declines due to Tariff Uncertainties from Trump

The value of Bitcoin has dipped below $85,000, as a result of traders responding to President Donald Trump's declaration of new tariffs on European imports. This continues its steep decline.

During his inaugural cabinet meeting on Feb. 26, President Donald Trump of the United States reaffirmed his plan to impose a 25% tariff on goods from the European Union, as stated by The Guardian. The cryptocurrency sector has been severely affected by this declaration.

At the time of publication, Bitcoin (BTC) has decreased by 4% in the past 24 hours, with its price now hovering around $84,600. Following President Trump's comments, the overall cryptocurrency market has also taken a hit, with the total market capitalization decreasing by 4%, according to CoinGecko.

In the past 24 hours, CoinGlass data indicates that total liquidations have surpassed $765 million, following the $1.5 billion that was erased on Feb. 25.

According to SoSoValue data, the market downturn has coincided with the largest one-day withdrawal from Bitcoin ETFs since they were first introduced, with $937.78 million being withdrawn on Feb. 25. This further substantiates the shift in sentiment among institutional investors, bringing the total outflows for the past week to nearly $1.5 billion.

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Since Trump assumed office in January, Bitcoin has dropped approximately 20% from its peak of $109,225. Following Trump's election victory and anticipation of a more favorable regulatory environment, there was a period of optimistic momentum. However, this was followed by the current sell-offs. The hope for swift implementation of pro-crypto policies has diminished as the administration appears to be prioritizing aggressive trade policies.

Security concerns have also unsettled investor sentiment. The market's liquidity has been drained by the collapse of the Solana memecoin boom, and concerns over vulnerabilities of centralized exchanges have been sparked by the unresolved $1.4 billion Bybit hack.

While some analysts view the correction as a healthy reset, others warn that a drop below $80,000 would trigger yet another round of liquidations, potentially driving Bitcoin towards $70,000. As macroeconomic uncertainty rises, traders remain cautious, awaiting potential regulatory changes that would restore confidence in the digital asset market.

Read More: "What's Behind Crypto's Slump Today? Tariffs, Market Instability Spur Selling Spree"