Why Bitcoin Is Crashing - And Where It Might Go Next

The worlds largest cryptocurrency by market value dropped as much as 7 on Friday to 78 273, its lowest since 10 November and on track for a fifth straight day of declines.

It has fallen 16 in the past week, its biggest weekly drop since the collapse of the FTX crypto exchange in November 2022. The broader crypto market has lost nearly half a trillion dollars in the past week alone, according to Coingecko.

Inflationary pressures, growth prospects are crumbling and Trumps tariffs are not going away. And with Trumps attention on anything except deregulating crypto, bitcoin traders are not happy, said Matt Simpson, senior market analyst at City Index.

Bitcoin typically trades loosely in line with assets like tech stocks that rise when investors are optimistic about economic growth. The tech heavy Nasdaq is at its lowest since November.

Investors fear the so-called exceptionalism of the US economy might be fading and are nervous about President Donald Trumps moves to impose tariffs which have stoked fears of higher global inflation and slower growth.