### Bitcoin Hits New Yearly Low Amid Tariff Concerns
The world’s most popular cryptocurrency, Bitcoin, experienced a significant drop to a new yearly low on Friday morning, as new U.S. tariffs on China compounded an already challenging week for the crypto market.
### Crypto Markets Tumble Into A Sea Of Red
BTC fell below the $80,000 mark for the first time since November 10, amidst escalating macroeconomic tensions related to U.S. President Donald Trump’s proposed trade tariffs. The leading cryptocurrency plummeted to a low of $78,393, according to CoinGecko data. At the time of writing, the price had slightly recovered to $79,330, reflecting an 8% decline over the past 24 hours. Bitcoin is now approximately 30% down from its January peak of over $108,700. The broader crypto market has also taken a hit, dropping to $2.73 trillion, a decrease of 9.5% in the last 24 hours. Ethereum (ETH), the second-largest cryptocurrency, has fallen 10.5% to $2,109, marking a low not seen in over 14 months. Among the top 10 altcoins by market cap, Dogecoin and Cardano have suffered the most, both experiencing a decline of 11.2% during the day, as per CoinGecko data. Ripple’s XRP also faced a double-digit drop, while Solana (SOL) decreased by 8.5%. Over the past 24 hours, more than $932 million in crypto-leveraged positions were liquidated, according to Coinglass data, indicating that forced selling has further exacerbated the market downturn.
### $70,000 Is Now A Possibility
According to Wolfe Research, Bitcoin could potentially fall to $70,000 if it fails to make a strong rebound above the $90,000 threshold. Analyst Read Harvey cautioned that breaking below the crucial $91,000 support level signals a bearish trend. “$91,000 acted as the floor over the past several months. With that level now decisively taken out, anything less than another V-shaped oversold response would send a very bearish message. So far, not so good,” Harvey reportedly shared with CNBC. Bitcoin hasn’t been priced at the $70,000 level since November 5, following favorable election polling results for pro-crypto Trump. However, investor sentiment took a hit after President Trump announced on Thursday that tariffs on Canadian and Mexican imports would proceed as planned, effectively doubling the 10% universal tariff on imports from China. This move has reignited concerns over inflation and economic growth, putting additional pressure on risk assets like cryptocurrencies.
Meanwhile, pseudonymous crypto analyst Rager remains unfazed by the current crash. He informed his 201.6K followers on the X social media platform that it “wouldn’t be abnormal to drop to mid to low $70ks.” He added, “It’s pretty normal in prior cycles, even during bull markets, for Bitcoin to drop -30% to -40%. In my opinion, we’ll see everything at higher prices in a month from now, regardless,” Rager quipped.
