Bitcoin (BTC) Drops Below $80,000 for the First Time Since November

Bitcoin (BTC) has dropped to the $79800 range on Feb. 28, marking a 6% decline in the past 24 hours.

Bitcoin price fell below $80,000 for the first time since November, erasing gains seen following Donald Trump’s election as concerns over proposed tariffs grew, crypto.news' price tracker showed.

Bitcoin (BTC) dropped to the $79,800 range by 28 February, marking a 6% decline in the past 24 hours. The drop comes as many traders are now expecting further corrections, with many targeting $82,000 as a possible support level.

However, with the recent shift in macroeconomic trends, attention is turning to a potential slump to the $70,000 range.

The drop also led to the total amount of Bitcoin 12-hour liquidations reaching $327 million, with longs taking the heaviest hit, as shown by Coinglass data.

The decline in Bitcoin price was largely driven by macroeconomic uncertainty, with Trump's proposal for a 25% tariff on imports from Canada, Mexico, and the European Union catching investors off guard.

While some analysts believe the tariffs would aid in stimulating domestic manufacturing, the market sentiment has shifted to one of risk aversion, with capital flowing into the dollar and U.S. Treasuries.

At the same time, institutional investors have been pulling back, with U.S. spot Bitcoin ETFs reporting $275 million in net outflows on 27 February, bringing the total outflows over the past week to $2.7 billion, according to SoSoValue data.

This marks a reversal from the institutional enthusiasm that helped push Bitcoin to its all-time high of $109,000 in January, shortly after Trump's inauguration.

Despite the sell-off, many traders remain optimistic, with Sentiment's 28 February X post highlighting a surge in social media mentions of "buy the dip," indicating sustained retail optimism.

However, historical patterns suggest that excessive optimism during downturns is often followed by further declines.

BitMEX co-founder Arthur Hayes also cautioned on 28 February that Bitcoin is still 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, the short-term outlook for Bitcoin remains highly uncertain.