Bitcoin Extends Decline Below $80K as Stronger Dollar Weighs on Crypto
Bitcoin (BTC) continued its downward trajectory during Friday’s Asian trading session, slipping below the key 200-day simple moving average (SMA) as renewed U.S. tariff concerns fueled demand for the U.S. dollar.
Key Highlights:
- BTC Drops Below $80K: The leading cryptocurrency fell below the critical $80,000 mark for the first time since November 10, extending its weekly losses to 16%.
- Altcoins Hit Harder: XRP lost a key 23.6% Fibonacci retracement level, signaling the potential for deeper declines. Solana’s SOL dropped to $125.6, its lowest price since September, while Dogecoin (DOGE) fell below 20 cents, wiping out nearly 78.6% of its October-December gains.
- Tariffs Spark Market Jitters: President Donald Trump announced plans to impose new tariffs on Canada and Mexico starting March 4 while also doubling the existing 10% tariff on imports from China.
- Dollar Index Strengthens: As a result, the U.S. dollar gained traction, with the dollar index (DXY) climbing to 107.30, extending its rebound from Wednesday’s low of 106.15. Analysts at ING noted that U.S. trade policies are likely to keep the dollar strong in the near term.
The combination of macroeconomic uncertainty and technical breakdowns in the crypto market continues to apply downward pressure on digital assets, leaving traders on edge for further volatility.
