Bitcoin’s (BTC) price has fallen to $88,000 U.S., its lowest level in three months, as investors turn increasingly risk averse.
The price of the largest cryptocurrency has declined 6% over the past 24 hours to trade at just under $88,000 U.S. However, it was as low as $87,750 U.S. in overnight trading.
Bitcoin is now down nearly 20% from the all-time high of just over $109,000 U.S. reached on the day of U.S. President Donald Trump’s inauguration in late January.
A 20% decline from recent highs is the technical definition of a bear market and comes as other cryptocurrencies suffer even steeper losses, with Ethereum’s (ETH) price down 10% in the past 24 hours to $2,370 U.S. per token.
Bitcoin began the year with a strong rally fueled by optimism about the positive changes the new Trump administration was expected to make for the crypto sector.
However, the so called “Trump bump” has since faded and investors appear to be growing increasingly nervous about the president’s policies, especially around trade tariffs.
Many crypto investors were also holding out hope that President Trump would immediately create a Strategic Bitcoin Reserve when he came into office, something that hasn’t happened.
There are also growing signs that the U.S. economy is slowing down and rising fears about a resurgence of inflation.
The $90,000 U.S. level marks the bottom of the range that Bitcoin has been trading in since the end of last November.
Some analysts have warned that if Bitcoin were to break below $90,000 U.S., it could fall towards $80,000 U.S.
