The sell-off underscores a swift change of fortunes for digital assets, which boomed after Trump’s election win
THE rout in Bitcoin worsened during Asian trading hours on Friday (Feb 28), sending it down 25 per cent from the all-time high it set less than six weeks ago as traders reverse bets that followed the election of US President Donald Trump.
The coin was down 2.6 per cent at US$82,220 at 10.13 am in Singapore, after hitting its lowest level since Nov 11. The move was part of a broad decline in cryptocurrencies: Ether, Solana, and XRP have also plummeted in recent days.
The sell-off underscores a swift change of fortunes for digital assets, which boomed after Trump’s election win. Bitcoin hit its all-time high of US$109,241 on Jan 20, the day of Trump’s inauguration, but it has tumbled since then amid worries about the President’s combative stance and broader concerns about the US economy.
“Given the macro environment, it’s not surprising to see we are where we are,” said Stefan von Haenisch, director of over-the-counter trading in Apac at crypto custody firm Bitgo. Traders are still waiting for Trump, widely seen as supportive of crypto, to come up with concrete steps for the sector including a Bitcoin stockpile, he said.
Crypto has also come under pressure from a wider shift in risk appetite among investors, who have rolled back Trump trades across a variety of markets. The S&P 500 has fallen this week, after tepid US consumer confidence data fuelled questions about the economic outlook.
Friday’s decline came alongside a broad sell-off in Asian shares, as traders in the region reacted to Trump’s latest comments on tariffs. The US president said that 25 per cent tariffs on Canada and Mexico would come into force from Mar 4, while Chinese imports would face a further 10 per cent levy. BLOOMBERG
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