By Callum Keown
Bitcoin hovered just above $80,000 early Tuesday, recovering from a four-month low the cryptocurrency hit overnight.
The price of Bitcoin tumbled to $76,867 in the early hours, its lowest level since Nov.10 as a broader market selloff kept digital assets under pressure. It has since climbed back to $80,480 but remains 14% down so far in 2025 and is 26% below its record high.
It's been a perfect storm recently for the world's largest cryptocurrency. President Donald Trump's announcement of a strategic Bitcoin reserve disappointed investors as it failed to include plans for the government to actively buy Bitcoin. Digital assets surged in the aftermath of Trump's election victory in November -- hitting a high of $109,000 on Inauguration Day -- but most of those gains have now been erased.
On top of that, cryptocurrencies have been impacted by market sentiment as investors have moved away from riskier assets amid fears over tariffs and an economic slowdown.
"The crypto market continues to exhibit risk-on behavior, with investor sentiment remaining cautious despite key developments. Since volatility set in on March 3, there has been no slowdown in selloffs despite the announcement of a Bitcoin reserve," Agne Linge, head of growth at WeFi said.
She added that the Bitcoin Volmex 30-Day Implied Volatility Index signaled further price fluctuations throughout March. "The push for a rebound in the short term is likely hinged on some unforeseen trigger," she added.
Write to Callum Keown at callum.keown@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 11, 2025 05:20 ET (09:20 GMT)
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