Bitcoin's sharp decline in value intensified on Friday as a broader cryptocurrency market crash sent its price down more than 25% from recent all-time highs.
The cryptocurrency token's price fell below $80,000 (€76,800) on Friday morning as much of its gains since Donald Trump's victory in the US election in November were erased.
When Mr Trump was sworn in as president in January, his price peaked at around $109,000 (€104,700) per bitcoin as traders expected his policies to push its value even higher.
However, crypto investors have since become frustrated by the apparent lack of action to fulfill his promises, including a high-profile campaign announcement to create a government-run Bitcoin strategic reserve.
Kathleen Brooks, an analyst at financial firm XTB, noted: “We believe that large investments have been made in cryptocurrency in the hopes that Donald Trump will legalize cryptocurrency when he takes office.”
“However, the commentary on cryptocurrency since Mr. Trump took office has been in stark contrast to expectations. This may be what is pushing investors to the exits.”
Mr Trump has previously stated his intention to make the US the world's “cryptocurrency capital”.
Cryptocurrency is a type of digital money designed for use on the Internet. It does not have a physical existence like dollars or pounds sterling.
You can send and receive cryptocurrency from other users, and it is often exchanged for money on platforms known as crypto exchanges.
Created in 2008, Bitcoin is the largest and oldest token. The next largest is Ether, better known for the Ethereum blockchain network it supports.
In the UK, only a few retailers accept cryptocurrency as a means of payment, and its actual use remains limited.
The price slide was exacerbated by Mr Trump's decision last month to launch a so-called meme coin – a form of cryptocurrency that has no purpose other than entertainment or financial speculation.
Mr Trump said at the time: “I don't know much about this project other than I started it and it was very successful.”
The price of the token, called Trump, has fallen by about 85% after a brief initial rally, prompting widespread backlash even from within the crypto industry, where commentators have called it a stunt.
Bitcoin price by
Sourse: breakingnews.ie
