Fri Feb 28 08:20:00 UTC 2025: ## Crypto Crash: Bitcoin Plunges Below $80,000 as Trump’s Pro-Crypto Policies Fail to Deliver Sustained Rally
**NEW DELHI** – Bitcoin has plummeted below the key $80,000 mark, erasing most of its post-election gains fueled by anticipation surrounding Donald Trump’s pro-crypto policies. The world’s largest cryptocurrency is currently down 21% from its January peak of $109,350, trading at levels last seen shortly after Trump’s November election victory. Other cryptocurrencies have experienced even steeper declines, with Ether falling over 40% since December. Trump’s own meme coin has also seen a dramatic 80% drop.
The market downturn reflects investor disappointment over the lack of concrete pro-crypto actions from the Trump administration, despite some positive steps like dropping an SEC lawsuit against Coinbase. Analysts cite the absence of a national Bitcoin reserve and a clear regulatory framework as key reasons for the price slump. “The market is disappointed,” said James Butterfill, head of research at CoinShares. “Until we get clarity on a Bitcoin reserve, I can’t see prices recovering significantly.”
The crypto market capitalization has shrunk by nearly $1 trillion since December, reaching $2.76 trillion. Institutional investors, including BlackRock, have contributed to the sell-off, though some sovereign wealth funds and banks are reportedly still buying.
Adding to the market uncertainty is Trump’s ongoing trade war with China, which has dampened investor appetite for riskier assets. However, some regulatory clarity has emerged with the SEC’s decision on meme coins and the dismissal of the Coinbase lawsuit.
Despite the current downturn, some analysts remain bullish. Standard Chartered’s Geoff Kendrick still predicts Bitcoin could reach $500,000 before Trump leaves office, citing potential future institutional investment as a key driver. The market awaits either a Federal Reserve rate cut or substantial pro-crypto regulations to trigger a significant bullish reversal.
First Piper 