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Bitcoin Plunges Below $80,000 for the First Time Since November 11

Bitcoin dropped to its lowest level in 3-1/2 months on Friday, dragged by uncertainty about U.S. President Donald Trump's tariff plans and crypto policy and flagging investor confidence after a $1.5 billion hack in rival crypto currency ether.

Bitcoin, the world's largest cryptocurrency by market value, was last down more than 5% on the day at $79,666, trading below $80,000 for the first time since November 11.

Bitcoin ETFs Have Shed More Than $2.4 Billion So Far This Week

Spot Bitcoin exchange-traded funds shed $759 million in assets on Wednesday, the second largest daily outflow in their nearly 14-month history as investors continued to shy away from risk-on assets sending the price of the funds’ underlying asset downward.

The decline follows a day after spot Bitcoin funds set a new high with $1.1 billion in daily outflows, according to U.K. asset manager Farside Investors. The ETFs have hemorrhaged more than $2.4 billion this week, a stark reversal from their dramatic success up to now. 

Crypto markets along with other assets have been rocked by the potential for a trade war resulting from the new Trump administration’s tariffs, spikes in inflation and dwindling consumer confidence in the U.S. economy. Last Friday, the University of Michigan sharply lowered its widely watched consumer sentiment index to its lowest level since November 2023.

Bitcoin Reserve Bills Are Failing in Quick Succession in US States

While the push for state governments to hold digital assets in one way or another generated momentum earlier this year, crypto reserve bills in four states have failed over the last month.

Lawmakers in Montana, North Dakota, South Dakota and Wyoming have all voted against establishing state-level crypto reserves in the last few weeks, citing concerns over risk and volatility associated with digital assets. Strategic crypto reserve bills have been introduced in 24 states so far, according to database Bitcoin Laws.

Bitcoin has tumbled about 27% since reaching a record high of around $109,000 hours before the January inauguration of President Donald Trump. Most reserves are typically invested in low-risk assets such as short-term bonds since they’re normally used to set aside money for future use.

SEC Officially Dismisses Coinbase Lawsuit Over Crypto Securities Claims

The Securities and Exchange Commission confirmed Thursday that it has dismissed a lawsuit against Coinbase that sought to regulate the company as a stock exchange, marking the official end of years of hardline enforcement against the crypto market.

Last week, Coinbase said regulators had agreed to drop the two-year-old case against the crypto exchange, which is the largest in the U.S.

The agency said in a release that it is dismissing the case while a new SEC crypto task force works on developing “a comprehensive and clear regulatory framework for crypto assets.”

Separately, the SEC said Thursday in a staff statement that the offer and sale of meme coins are generally not subject to federal securities laws, although fraud in meme coins could still be policed by other federal and state regulators. Meme coins are a type of cryptocurrency often created as jokes and mainly for speculation.

Bitcoin Spot ETF Flow

The overall net outflow of the US Bitcoin spot ETF on Friday was $275.83 million. The total net asset value of Bitcoin spot ETFs is $94.30 billion, and the ETF net asset ratio (market value compared to total Bitcoin market value) is 5.69%.

Source: SoSoValue

The Bitcoin spot ETF with the highest net outflow on Feb. 27 was iShares Bitcoin Trust (IBIT), with a net outflow of $189.02 million. Following that was WisdomTree Bitcoin Fund (BTCW), with a net outflow of 53.78 million, according to SoSoValue.

Source: SoSoValue