Six weeks after Trump took office, Bitcoin plunged into a bear market

Six weeks after Trump returned to the White House, bitcoin was violently sold off by investors and entered a bear market.

According to a Reuters report on Thursday (March 13), when Trump won the election in November, bitcoin attracted a large number of investors, and the price soared, and in January this year, hit a record high of $109,071.

But then due to the more aggressive U.S. tariff policy, the economic outlook is full of uncertainties and other factors, bitcoin was quickly sold, gradually reversed gains, fell to about $80,000, a decline of nearly 25% from the peak in January. Investors, some of whom bought bitcoin with leverage, have suffered particularly.

According to analysts at Bitfinex, traders with leveraged positions have accumulated daily losses totaling more than $800 million, with February 28 to March 4 being the worst days for single-day losses.

Although Trump issued an executive order calling for the creation of a Bitcoin strategic reserve and additional stockpiling of other cryptocurrencies, the effect was only temporary.

Analyst: Bitcoin's fall to $80,000 was unexpected

"I didn't expect Bitcoin to fall to $80,000," said Kevin Dede, an analyst at investment bank HC Wainwright. "It doesn't look like the market sell-off is over."

John Glover, chief investment officer at cryptocurrency platform Ledn, also said: "This wave of selling has taken many people by surprise."

He added that Bitcoin could find support at the $73,500 level.

Meanwhile, financial commodities that track digital assets have seen withdrawals for four consecutive weeks. According to CoinShares, the total AUM of related financial commodities has decreased by about $4.75 billion to $142 billion, falling to the lowest level since the U.S. election in November last year.

Data from jpmorgan Chase also showed that the U.S. spot Bitcoin Listed fund (ETF) saw outflows of about $1.1 billion on February 25, the largest daily outflow since its launch in January last year.