Bitcoin (BTC) Price Drops 28% from ATH to $78,000 as Economic Pressures Weigh on Crypto Markets

The original cryptocurrency has fallen 28% from its all-time high of $109,000 just last month, tumbling to $78,000

The price of Bitcoin has tumbled 28% from its all-time high of $109,000 just last month to $78,000 on Friday. The currency’s recent downturn is symptomatic of economic pressures that have been bearing down on the crypto and stock markets for the last few weeks, not the least of which is Trump’s ongoing threat of major tariffs on foreign countries.

After threatening the tariffs several times last month, President Trump said on Thursday that the 25% tariff on Mexico and Canada will go into effect on March 4, in addition to a new 10% tariff on China that will be applied on top of an existing 10% tariff which went into effect Feb. 4. The tariffs are part of Trump’s broader plan to reduce the U.S. trade deficit and create jobs in the U.S. However, economists say that the tariffs will likely increase inflation and lift the price of everyday goods.

In addition to the tariffs, other concerns have led investors to reorganize their portfolios and dump their crypto holdings. Last week’s $1.4 billion hack of crypto exchange Bybit and growing frustration with memecoin rug pulls—like Argentina’s $LIBRA disaster—deepened distrust in crypto as a safe investment.

The downturn does not seem to have been slowed by a string of good news that altered the outlook for the cryptocurrency industry this week. The Securities and Exchange Commission officially dropped several lawsuits and investigations against large crypto companies this week, including Coinbase, Uniswap, and Consensys’s MetaMask. The end of those challenges has long been a major goal for industry leaders, who have accused the SEC of setting up crypto companies for failure by refusing to provide clear rules of the road for the industry.

“What we’re seeing now is a broader repricing of risk across global markets. After a period of heightened risk appetite, investors are becoming more cautious in response to economic indicators and geopolitical events,” says Mike Cahill, core contributor to Pyth, a network that provides market data to applications on multiple blockchains.

“This shift is evident in the S&P 500, which has seen a 3% decline over the past month. However, the cryptocurrency market is experiencing a steeper downturn, with popular cryptocurrencies like Dogecoin and Ethereum falling by double digits—39% and 28%, respectively, since last month.”

Despite the sell-off this week, Cahill says that he remains bullish on Bitcoin and its long term trajectory.

“Historically, Bitcoin thrives in uncertainty, and long-term players know that these shakeouts clear weak hands while setting the stage for the next leg up,” he said.