Biggest drop since 2022

Bitcoin price today

The world's largest cryptocurrency fell as much as 7% to $78,273, its lowest since November 10 and its fifth consecutive day of decline.

Bitcoin has lost 16% of its value over the past week, marking its biggest weekly decline since the FTX exchange crash in November 2022.

Bitcoin has hit its lowest level since November and is on track for its biggest weekly loss in more than two years. The sell-off comes amid a slump in tech stocks, a $1.5 billion hack and doubts about U.S. cryptocurrency policy that have soured sentiment.

Not only Bitcoin, the entire cryptocurrency market also plummeted. According to data from Coingecko, in just one week, the market has 'evaporated' nearly 500 billion USD.

Why did Bitcoin price drop so much?

According to City Index analyst Matt Simpson, there are three main reasons:

Inflationary pressures and weakening economic growth. Investors worry that the US economy is losing its 'specialness' and that former President Donald Trump's tariff policies could fuel higher inflation.

The tech stock market is also under pressure. The Nasdaq, which includes many large tech companies, is at its lowest level since November. As investors worry about economic growth, they tend to sell off both tech stocks and Bitcoin.

Bybit – the world’s second-largest cryptocurrency exchange – has just had its Ethereum worth about $1.5 billion stolen by hackers. This could be the largest cryptocurrency theft ever, shaking the confidence of investors.

Trump's policy change also affects Bitcoin

When Trump first took office, the market expected his administration to be more favorable to Bitcoin and cryptocurrencies, which helped Bitcoin price approach $110,000 in mid-January.

However, there is still no specific policy on supporting cryptocurrencies. According to Joshua Chu, co-chairman of the Hong Kong Web3 Association, the current drop in Bitcoin prices shows that 'the positive effect of a crypto-friendly government has no longer worked'. He also emphasized that Bitcoin is still a high-risk asset, not 'digital gold' or 'inflation hedge' as many people expect.

Ether, the second-largest cryptocurrency by market capitalization, also fell 6% to $2,149.38, its lowest level since January 2024. The memecoin TRUMP, issued by Trump upon his inauguration, lost 50% of its value, while his wife's MELANIA coin lost up to 90%.

Money is leaving the market

Investors are also withdrawing money from Bitcoin ETFs (investment funds that trade Bitcoin on stock exchanges). This week, Bitcoin ETFs in the US saw a total of $2.27 billion withdrawn.

Bitcoin's failure to surpass $97,000 since November is the first sign that the cryptocurrency bubble may be deflating, Bank of America experts say.

The recent crypto boom has been largely driven by ‘crypto bros’ – young, mostly male investors who have a strong belief in digital currencies and often promote them heavily on social media. However, that excitement seems to be cooling down.

'It's a combination of macro factors,' said Reuben Conceicao, chief strategy officer at digital wallet company Metasig. 'Rising tariffs, geopolitical uncertainty and war, coupled with the Bybit hack, have further undermined confidence.'

The decline also affected cryptocurrency-related stocks in pre-market trading in the US. Shares of exchange Coinbase and Bitcoin buyer MicroStrategy both fell 2.3%, while mining companies Riot Platforms and MARA Holdings fell about 3.5%.

Source: https://baoquangnam.vn/gia-bitcoin-hom-nay-1-3-2025-giam-manh-nhat-ke-tu-cu-sap-cua-ftx-nam-2022-3149714.html