Bitcoin Drops Below $90K as Trump-Fueled Crypto Boom Fizzles
Bitcoin has taken a sharp dive, slipping below the $90,000 mark and signaling a potential end to the Trump-driven crypto surge. Just a month ago, during Donald Trump’s inauguration, Bitcoin was riding high, but now it’s down nearly 20% from its all-time peak. The excitement that fueled its rally since Trump’s re-election in November appears to be losing steam.
As of Tuesday morning, Bitcoin was trading at $87,290, marking an 8% drop within 24 hours. And it’s not just Bitcoin feeling the pressure—other major cryptocurrencies are also in freefall. Ether, the second-largest cryptocurrency, took a 10% hit, while XRP, Solana, Dogecoin, and Cardano all saw double-digit declines. Investors are now left wondering: what’s causing this sudden downturn?
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One of the major factors appears to be a massive crypto hack targeting Dubai-based exchange Bybit. Just last week, hackers—allegedly linked to North Korea’s Lazarus Group—stole a staggering $1.4 billion in crypto assets. This has shaken confidence in the market, with traders pulling back amid security concerns. On top of that, a recent memecoin scandal involving Argentina’s President Javier Milei has reignited skepticism in the crypto space, adding to the negative sentiment.
Another big issue? Bitcoin ETFs are bleeding money. Once seen as a major success, U.S. Bitcoin ETFs have recorded net outflows of $1.6 billion in just two weeks. This means fewer investors are pouring in fresh capital, and without that influx, Bitcoin’s price is struggling to find support. The excitement around Bitcoin-backed reserves also seems to be cooling. While some state governments are exploring Bitcoin reserves, the Trump administration has yet to take any concrete steps, leaving investors waiting—and possibly losing patience.
Macroeconomic conditions are playing a role too. As Bitcoin becomes more mainstream, it’s reacting to economic data just like traditional stocks. Recent inflation reports and Trump’s new tariffs have created uncertainty in financial markets, further dampening investor confidence.
For now, Bitcoin’s future remains uncertain. Will it find new momentum, or is this the start of a longer downtrend? Investors will be watching closely to see what comes next in this ever-volatile crypto market.
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