BTC/USD: Bitcoin Slumps to $82,000 as Crypto Market Takes $1 Trillion Hit to Valuation

Nearly 30% of the total crypto market value is gone in less than three months as traders saw little staying power for digital assets at sky high prices.

👋 Bitcoin Waves Goodbye to Trump Pump

• Bitcoin prices BTCUSD were in a bad place late Wednesday but some signs of recovery surfaced by Thursday morning. The OG cryptocurrency dipped to a four-month low of $82,000 a piece, and yes, it wiped off all its post-election gains when euphoria around Trump’s presidency lifted the token to a record high.
• The brutal selloff was widespread with Ethereum ETHUSD diving to $2,300 — a low not seen since mid-September. Ether is now down roughly 50% from its December high of $4,125 per token.

💸 $1 Trillion Wiped Off

• General market bearishness swept the crypto corner and erased a huge chunk of its valuation — we’re talking a trillion (with a T). More than $1 trillion has been washed out from the digital asset market from its ultimate peak of $3.8 trillion. Right now, the space is worth around $2.8 trillion.
• The lack of fresh news to stir the market and support the bullish narrative is driving traders and investors to seek safer, more predictable returns or simply sit out the uncertainty in the US dollar.

📢 Are Tariffs Driving the Selloff?

• President Donald Trump’s hostile tariffs — the most recent one a 25% hike on Europe — is threatening to cloud the growth outlook and throw global trade in a dark place where countries retaliate against each other and spark inflation growth.
• All this could potentially lead to a dent in consumer spending, shrink corporate earnings and bring back higher interest rates by the Federal Reserve.