Bitcoin Plunges Below $80K, Threatens Pre-Election Levels

Bitcoin's price has dipped below the $80,000 mark, facing the potential of a further decline to levels last seen before the U.S. election, as the ongoing market correction continues to impact the leading cryptocurrency.

On Thursday, Bitcoin reached a low of $79,500 on the Binance exchange, marking a 26% decline from its January peak. This downturn comes amidst broader market risk aversion, which has been putting pressure on crypto assets.

Analysts at Wolfe Research have warned that if Bitcoin fails to reclaim the $90,000 level, it could retreat to $70,000, a price not seen since Election Day. A drop to the mid-$70,000 range is also possible, according to the firm's analyst, Read Harvey.

Harvey noted that the key $91,000 support level has been decisively broken, and the current price action is cause for concern. If bearish sentiment intensifies, prices could fully reverse to their pre-election levels.

The recent decision by President Trump to impose tariffs on major trading partners, including Mexico, Canada, and China, has sparked concerns about an economic slowdown. This move has dampened earlier optimism following the election, inauguration, and executive order on crypto.