On January 20, Trump was inaugurated as President of the United States, and Bitcoin reached a historic high of $109,241 on that day, regarded as the star asset of the &#34;Trump trade.&#34;
However, in less than six weeks, the price plummeted by 28% to $78,226, with the cryptocurrency market's market capitalization evaporating by $1 trillion.
This dramatic change caught investors off guard, and market sentiment plunged to a low.
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<h2>Bitcoin's Plunge, Intensifying Turmoil in the Crypto Circle</h2>
Since Trump's inauguration day, Bitcoin has continued to decline.
In February, Bitcoin's monthly decline reached 18%, the largest single-month drop since June 2022. In the past week, the downward trend intensified, with a drop of 7.2% on Friday to $78,226, marking a 28% decline from its peak.
Bearish sentiment has also impacted the U.S. spot Bitcoin ETF. In February, the net outflow from U.S. Bitcoin ETFs reached $3.3 billion, setting a record for the largest monthly withdrawal in history. Zaheer Ebtikar, co-founder of Split Capital, stated:
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&#34;Some major players have chosen to exit, significantly increasing selling pressure.&#34;
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Media analysis indicates that Bitcoin's plunge is closely related to the global risk aversion triggered by Trump's tariff policies. Previously, Trump announced tariffs on multiple countries, raising concerns about a trade war. Asian and European stock markets fell in response, and the high-risk cryptocurrency market suffered heavy losses.
Stefan von Haenisch, head of over-the-counter trading for Bitgo Inc. in the Asia-Pacific region, remarked:
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&#34;Given the turbulent macro environment, Bitcoin's decline was expected, as investors await Trump to fulfill promises regarding Bitcoin reserves.&#34;
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Technical indicators show that Bitcoin's decline may have overshot. The price has fallen below the 200-day moving average for the first time since last October. The 14-day Relative Strength Index (RSI) has dropped into the oversold territory, reaching a new low since September of last year.
Ruslan Lienkha, market director at YouHodler, pointed out that according to technical analysis, $70,000 is the next technical support level, but it will only be reached if the stock market remains sluggish; Agne Linge, growth director at WeFi, stated that the &#34;Fear and Greed Index&#34; has dropped to 21, indicating extremely weak market confidence, with tariff issues remaining a key variable.
<h2>Upcoming Summit</h2>
On March 7, the White House will host its first cryptocurrency summit, where Trump will deliver a speech.
Currently, the market is awaiting policy signals from Trump's summit

GBTC

On March 7th, the White House will hold its first cryptocurrency summit, where Trump will deliver a speech. Currently, the market is waiting for policy signals from Trump's summit

- On January 20, Bitcoin reached a historic high of $109,241, but within six weeks, it plummeted 28% to $78,226, leading to a $1 trillion loss in the cryptocurrency market.  
- The decline was attributed to investor panic and bearish sentiment, exacerbated by Trump's tariff policies, which heightened global risk aversion and impacted stock markets.  
- As the market anticipates policy signals from Trump's upcoming cryptocurrency summit on March 7, technical indicators suggest Bitcoin may find support at $70,000 if market conditions remain unfavorable.