Bitcoin slumped below €77,000 on Friday for the first time since November following President Donald Trump’s latest volley of tariffs.
Concerns about the global economy fuelled by fears of a global trade war, coupled with disappointing results this week from AI chip manufacturer Nvidia, have led investors to exit investments seen as risky.
One of the most volatile assets currently is bitcoin, which briefly dived below €77,000 on Friday for the first time since November.
The cryptocurrency lost more than 25 percent of is value when compared to the €105,000 it was worth when Trump was re-inaugurated as US President in January.
“The crypto sector is suffering a bit of a meltdown today,” said Trade Nation analyst David Morrison.
He noted that another popular cryptocurrency, ethereum, has lost nearly half of value since mid-December.
“According to some analysts, that represents not just a correction, but a full-blown bear market,” he added, noting bitcoin has lost most of the gains it made since Trump was elected in November.
Morrison said the gains were driven by hopes of a much friendlier regulatory environment, which have now unravelled to some extent.
City Index and FOREX analyst Fawad Razaqzada said that the broad tech-sector weakness and tariff threats were also putting downward pressure but that €77,000 ($80,000 USD) was a key resistance level.
“A decisive break below $80K would bring into focus the long-term support area” of around $70,000 (€67,000) he said.
Tech stocks more widely have also struggled, with shares in Nvidia continuing to be hit by profit-taking despite posting solid results on Wednesday.