Economy

Bitcoin fell below $90,000, hitting its lowest level since mid-November

Bitcoin has plummeted in value, breaking through the $90,000 mark. This is the lowest level since mid-November last year, Komersant ukrainskyi reports citing Bloomberg.

According to analysts, as of 10:50 a.m. Kyiv time on Tuesday, bitcoin was trading at $89,700, down 6.1% overnight. Other digital currencies also showed negative dynamics, with Ethereum, XRP, and Solana falling significantly.

Experts attribute this decline to several key factors. First, it is the new trade tariffs introduced by the administration of US President Donald Trump. His tough policies toward allies and geopolitical rivals are undermining investor confidence.

“The current drop is most likely due to the macroeconomic uncertainty that has hit most financial markets in recent days,”

– commented Adrian Przelozny, head of the Independent Reserve crypto exchange.

It is worth noting that bitcoin has lost almost 20% of its value since Trump’s inauguration in January, although it experienced rapid growth immediately after his election in November.

An additional blow to the reputation of cryptocurrencies was caused by the recent large-scale hack of the Bybit exchange, the largest cryptocurrency hack in history, during which hackers allegedly linked to North Korea stole about $1.5 billion in Ethereum.

The market was also negatively affected by the memecoin scandal involving the Argentine president and the failure of cryptocurrency tokens issued by the Trump family. According to the analytical service CoinGecko, Trump’s token lost more than 80% of its value after the launch.

In 24 hours, more than $1.34 billion in long positions were liquidated in the crypto derivatives market, according to CoinGlass.

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Bitcoin

Bitcoin is the world’s first and most popular cryptocurrency, which appeared in 2009. It was created by a person or a group of people under the pseudonym Satoshi Nakamoto, who remain anonymous to this day. Bitcoin is based on blockchain technology and has no centralized governing body.

Bitcoin is “mined” using a special mining technology, which is a digital analogy of mining physical minerals. Similarly to physical minerals, the number of Bitcoins is limited – there are only 21 million tokens in existence. So far, 19 million tokens have been mined, which is more than 90% of all “deposits”. That is why mining is becoming increasingly difficult and expensive.

Bitcoin, like anything else in the world, can be exchanged for anything else, including traditional currencies. The value of Bitcoin shows the level of trust in it.

Bitcoin is considered a reliable and well-secured currency with a very high level of confidentiality. In the Bitcoin system, all information about transactions is open, but information about owners is completely anonymous. That is why Bitcoin, like some other cryptocurrencies, is popular among Ukrainian corrupt officials.

Initially, Donald Trump called cryptocurrencies a fraud, but during the last election campaign he changed his mind dramatically. Now, Trump is talking about maximizing cryptocurrency support in the United States and promising to make the US the cryptocurrency capital of the world. Against the backdrop of these promises, bitcoin and the cryptocurrency market in general have experienced a real boom. On the day of Trump’s inauguration, bitcoin’s value reached $109 thousand.