Bitcoin falls to a 3-1/2-month low, dragged by uncertainty about US President Donald Trump's tariff plans and crypto policy

Bitcoin, the world's largest cryptocurrency by market value, was last down more than 5% on the day at $79,666, trading below $80,000 for the first time since November 11.

Bitcoin fell more than 5% on Friday to a 3-1/2-month low as uncertainty about U.S. President Donald Trump's tariff plans and crypto policy, plus flagging investor confidence after a $1.5 billion hack in rival coin ether, weighed.

The world's largest cryptocurrency was last down 5.25% at $79,666 by 07:33 ET (11:33 GMT), trading below the $80,000 level for the first time since November 11.

"Bitcoin's fall below $80k shows that positive sentiments from a crypto-friendly administration and high-profile endorsements have run their course," said Joshua Chu, Co-Chair of the Hong Kong Web3 Association.

The cryptocurrency has shed a quarter of its market value since mid-December, when it topped $105,000 on optimism that the Trump administration would champion a strategic bitcoin fund and largely loosen regulation.

But flurries of appointments of crypto-friendly officials have not been followed by much in the way of legislation or policy.

"Momentum ran out when there wasn't enough fresh news to keep driving the bullish narrative," said Kyle Rodda, senior financial market analyst at Capital.com.

"On top of that, given the move in Mag 7 stocks which we've seen, which is also a story of momentum slowing and valuations deflating, bitcoin - which still trades as a 'higher beta tech' play - is being dragged down by sell-off in Wall Street tech stocks."

Ether, the second-largest cryptocurrency, fell nearly 6% to $2,149.38, around its lowest since January 2024. In addition, investors have been pulling money out of bitcoin-backed exchange-traded funds.

Global investors were jittery on signs that the so-called exceptionalism of the U.S. economy might be fading, while Trump prepares to impose tariffs that have stoked fears of higher global inflation and slower growth.

Trump has indicated he plans to slap a 25% levy on imports from Canada and Mexico from early March, and more tariffs on China. In a sign of unease, safe-haven U.S. Treasury prices have rallied sharply, sending yields to three-month lows.

The crypto world was also nervous after Dubai-headquartered Bybit, the world's second-largest exchange after Binance, said on February 21 that hackers had stolen ether worth around $1.5 billion.

Bybit caters to more than 60 million users worldwide and offers access to various cryptocurrencies, including bitcoin and ether.

Bitcoin falls by 5% at $84,201

Blockchain research firm Elliptic said the hack was probably the single largest known theft of any kind.

"It's a combination of macro forces. The Fed only planning one rate cut, more tariffs, uncertainties around geopolitics and war, and the ByBit hack didn't help confidence either," said Reuben Conceicao, chief strategy officer at digital wallet firm Metasig.

"It is hard for people to be excited and pump BTC when there are bigger issues at play."