The sell-off wave in the cryptocurrency market pushed bitcoin below $80,000

The largest and most valuable digital asset dropped to as low as $79,000 in early hours on Friday—its lowest level since Nov. 11

U.S. President Donald Trump’s administration has seen a broad sell-off wave in the cryptocurrency market push bitcoin below $80,000, bringing it closer to rally levels following Trump’s victory in November.

The world’s largest and most valuable digital asset dropped to as low as $79,000 in early hours on Friday, its lowest level since November 11, plunging more than 27% from its record high of over $109,000 during Trump’s inauguration on January 20.

The market cap also fell to $1.5 trillion, marking a 24% decline from its $2 trillion peak, according to CoinMarketCap.

The unit saw an eye-watering rally after Trump’s election victory in November, driven by his campaign promise to free up regulations surrounding digital tokens and pledge to make the U.S. the crypto capital of the world.

However, despite a sell-off that pushed it to its lowest level in three months, British banking giant Standard Chartered’s crypto analyst Geoffrey Kendrick has maintained his forecast that bitcoin will reach $500,000 during Trump’s presidency.

Speaking to CNBC, Kendrick said he expects bitcoin to hit the $200,000 mark this year before climbing even higher in the coming years.

“What the crypto ecosystem needs is for traditional financial players like Standard Chartered, BlackRock, and others involved in ETFs to fully step in. As the industry becomes more institutionalized, it will also become safer,” Kendrick said.

He added that increased institutional adoption, combined with greater “regulatory clarity” in the U.S., is likely to reduce market volatility over time.

Elsewhere, the Texas Senate’s Business and Commerce Committee has passed Senate Bill 21, setting the stage for the establishment of a Strategic Bitcoin Reserve. The legislation positions Texas as one of the first states to potentially hold a cryptocurrency reserve.