Down 13% over the past three days, Bitcoin (BTC) has now registered its biggest decline since the last “crypto winter” occurred in November 2022.
The fall in Bitcoin’s price over the past three trading sessions marks the largest decline since the FTX crypto exchange went bankrupt in November 2022, sending crypto prices into a tailspin that lasted more than six months.
Bitcoin is currently trading at $86,200 U.S., down 21% from an all-time high of just over $109,000 U.S. reached on Jan. 20, the day of U.S. President Donald Trump’s inauguration.
The selloff comes as investors turn risk averse and move out of speculative assets such as cryptocurrencies, say analysts.
Institutional demand for the largest cryptocurrency by market capitalization has weakened substantially in recent weeks, according to JPMorgan Chase (JPM) and other market observers.
Expectations are for the crypto market to continue its decline in the near-term, especially if President Trump makes good on his threat to impose 25% tariffs on Canadian and Mexican imports starting on March 4.
Other cryptocurrencies also continue to see steep price declines, with Ethereum (ETH) now down 30% on the year and trading at $2,350 U.S.
Analysts say the decline in crypto also comes as investors grow increasingly disappointed with President Trump’s lack of action on digital coins and tokens.
Many crypto bulls expected Trump to create a Strategic Bitcoin Reserve for the U.S. immediately upon his return to the White House, something that hasn’t happened.
Bitcoin’s price is now down 8% on the year.
