Market uncertainties deal blow to Bitcoin, its price sinks

HONG KONG

Bitcoin sank below $80,000 on Feb. 28 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 Nov. 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 U.S. 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 U.S. economy is slowing.

Earlier this week other cryptocurrencies also saw large drops.

The decline in bitcoin and other crypto assets accelerated after a report showed a bigger-than-expected drop in consumer confidence for this month.

Cryptocurrency is highly volatile, and prices can change rapidly.