Bitcoin Post-Election Rally Crushed: Prices Dip Below $84,000 As Tariff Tensions Rise
Bitcoin (BTC) prices fell to a four-month low of $81,000, declining approximately 20% since President Trump's inauguration. Investors are hedging against further losses, with significant interest in put options at a $70,000 strike price. The market faces $4.9 billion in open interest set to expire by February 28. Contributing factors to the downturn include Trump's geopolitical stance, high inflation concerns, and the Bybit Ethereum hack affecting market sentiment. Over the past three days, $2 billion in bullish bets were liquidated, and demand for Bitcoin ETFs has decreased, resulting in $2.1 billion in outflows. Spot Bitcoin ETFs experienced over $1 billion in withdrawals on Tuesday, the largest since their launch. Ethereum's volatility has increased due to the Bybit incident, while Solana (SOL) has lost recent gains. The market seeks a new catalyst to shift from its bearish trend, with BTC currently trying to find support at $84,578 after a 4.5% drop in 24 hours.
