Bitcoin Falls Below $80K Amid Macroeconomic Uncertainty, Losing Trump-Election Gains

Bitcoin has dropped below the $80,000 mark for the first time in over three months, as the cryptocurrency faces growing macroeconomic uncertainty, largely fueled by concerns over proposed tariffs from U.S. President Donald Trump. On February 27, Bitcoin (BTC) fell to $79,752, marking a significant 2.65% drop in just one hour, according to TradingView data. The decline also led to $100.01 million in long positions being liquidated, according to CoinGlass data.

This marks a stark contrast to the optimism seen after Trump’s election, when Bitcoin briefly surged to new highs. The cryptocurrency was last trading at this price level on November 11, following Trump's election, when expectations of pro-crypto policies drove a rally. Since then, Bitcoin has shed nearly 26% of its value, dropping from its all-time high of $109,000 reached shortly after Trump’s inauguration on January 20.

Market Sentiment Shifts Toward $70K Target

In recent days, traders had eyed the $82,000 level as a potential support for Bitcoin. However, the latest market developments suggest that a further decline toward $70,000 is becoming increasingly likely. Crypto traders are now adjusting their expectations in light of the ongoing market volatility.

On February 27, trader dmac posted on X (formerly Twitter), stating, “Dip buyers are getting smoked. I still see $70k as the target.” Bitcoin last traded near the $70,000 mark on November 5, after early polling results indicated favorable conditions for Trump’s re-election.

Another pseudonymous trader, Mandrik, humorously remarked, “If you liked $80k Bitcoin, then you’re gonna love $70k Bitcoin.” Meanwhile, Rager, another well-known figure in the crypto community, downplayed concerns, telling their 201,500 followers that it would be “normal” for Bitcoin to dip to the mid-to-low $70k range.

"Pretty normal in prior cycles, even during bull markets, for Bitcoin to drop -30% to -40%," Rager noted.

Market Split Over Bitcoin’s Immediate Future

Sentiment around Bitcoin's next move is divided. Data from crypto prediction platform Polymarket shows a near even split in the community regarding whether Bitcoin will continue to fall or make a rebound. "Nearly 50/50 chance it continues its plummet & falls below $70k," Polymarket shared in a February 27 post.

Many analysts point to macroeconomic factors, such as uncertainty surrounding Trump’s proposed tariffs, as contributing factors to Bitcoin’s and the broader crypto market's struggles. Since Trump’s inauguration, concerns have mounted about the broader economic impact of such tariffs, leading to growing volatility in both traditional markets and digital assets.

Despite Volatility, Institutions Remain Bullish on Bitcoin

Despite the recent downturn, institutional players remain confident in Bitcoin’s long-term prospects. On February 27, Geoffrey Kendrick, head of digital assets research at Standard Chartered, expressed his belief that Bitcoin could reach $200,000 this year, with a potential surge to $500,000 by the end of Trump’s second term.

Kendrick’s bullish forecast stands in contrast to the current market jitters, but his optimistic outlook underscores a broader institutional belief in Bitcoin’s resilience, even amid short-term volatility.

As the market grapples with macroeconomic uncertainty and political tensions, Bitcoin’s future remains uncertain. While some traders anticipate further drops to $70,000, others are hopeful that institutional support and long-term fundamentals will lead to a recovery. For now, Bitcoin’s trajectory remains closely tied to the broader economic and political landscape, with market participants continuing to navigate the volatility.