 "Bitcoin’s volatility and lack of intrinsic value have been long-standing criticisms. Image Credit: Reuters")
Bitcoin sank below $80,000 on Friday for the first time in more than three months as a sell-off in the cryptocurrency sector gathered pace amid volatility in global markets.
The digital unit fell to as low as $79,525.88 in early Asian trade – its lowest level since November 11 and sharply down from the record above $109,000 seen just last month.
The unit saw an eye-watering rally after Donald Trump’s election victory in November after he promised on the campaign trail to free up regulations surrounding digital tokens and pledged to make the United States the crypto capital of the world.
Bitcoin’s gains were in line with advances across world markets but the euphoria has dulled in recent weeks as the US president has pursued a hardball policy of hammering partners with tariffs and threatening to spark a global trade war.
His pledges to slash taxes and immigration have also fanned concerns that he could reignite inflation, forcing the Federal Reserve to keep interest rates elevated longer than had been expected, while recent data have indicated the US economy is slowing.