Experts are warning people that Bitcoin is experiencing a ‘heliocentric reckoning’ after its historic high is followed by a major crash.
The cryptocurrency has fallen to its lowest point since November 2024, with its plummet having wiped almost half a trillion dollars from the market.
In January, Bitcoin hit a new record high of $108,000 but is now on a steep decline, currently sitting at $89,000.
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While the initial spike in the share value appeared to coincide with President Donald Trump’s election victory, the decline also seems to be related to the time he’s spent in the White House so far.
According to one expert, the latest fall for Bitcoin is due to Trump having not yet fulfilled any of his major promises after a month in office.
Speaking to The Independent, Petr Kozyakov, who is the co-founder and chief executive of the crypto payment infrastructure platform Mercuryo, said: “While the new Trump administration in the US has been vocal in its pro-crypto stance, the industry is still waiting for this to manifest in a tangible way in the form of measures such as a mooted Bitcoin Strategic Reserve.”
Kozyakov went on to say: “The cryptocurrency market is having a heliocentric reckoning as bitcoin slides below $89,000 amid a faltering US stock market.
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“Rather than being at the centre of the financial universe, bitcoin’s place remains far out on the periphery as an ultra risk-on asset to be readily sold at the very hint of troubles ahead.”
In other crypto news, Bybit, which is a crypto exchange firm, fell victim to the largest digital heist in history after reporting over a billion dollars had gone missing.
Last Friday (February 21), a transfer of the cryptocurrency Ethereum was ‘manipulated’ by hackers who were able to transfer the huge sum to an unidentified address, according to Bybit.
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The company went on to say that the incident led to a spike in withdrawal requests.
Bybit has said that its ‘swift and transparent crisis management ensured that the crypto market remained stable, with no significant price volatility’.
In a statement, the firm continued: “Despite the significant scale of the hack, Bybit’s 1:1 reserve guarantee ensured that client assets remained fully intact.
“Bybit CEO Ben Zhou reassured users that Bybit is solvent and can cover the loss, emphasizing that all client assets are backed on a one-to-one basis. This guarantee demonstrates Bybit’s financial stability and commitment to user security.”