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The weekly defeat at Bitcoin worsened on Friday, with digital assets reaching a low of more than three months, reversing profits following the election of US President Donald Trump.
Bitcoin was trading for around $80,500 in early Asian trading. The day fell 3.45%, nearly 25% lower than the all-time hit in mid-December.
Bitcoin enjoyed a surge in prices after Trump's victory in November.
However, prices slipped as investors were perceived as weaknesses in the global stock market, uncertainty surrounding the new president's tariff policy, and resolutions against major wars such as Russia-Ukraine and Israel-Gaza.
Investor sentiment was also exacerbated by news that BYBIT, the leading cryptocurrency exchange, has been hacked by what is estimated to be the largest crypto robber in history for $1.5 billion.
“It appears that the market has become volatile in response to the sub-passing incident,” Jeff Mei, chief operating officer of Crypto Exchange BTSE, said in a statement sent to CNBC, adding that concerns and suspensions in the US Fed rate cut also curtailed the market.
Still, some code bulls remain positive about the Bitcoin outlook as they await key regulations development from the Trump administration.
Already, Trump has signed an executive order to promote US cryptocurrency advancements and develop national digital assets stockpilings. Meanwhile, his administration has created a task force and a “crypto emperor” tasked with supporting a clear regulatory framework for crypto assets.
Geoffrey Kendrick, head of Digital Assets Research at Standard Chartered, said in an interview with CNBC's “Squawk Box Europe” on Thursday that Bitcoin could surpass the $200,000 threshold this year.
Along with “regulation clarity” in the US, the increase in institutional adoption of crypto should be less volatility over time, he said.
—CNBC's Ryan Brown contributed to this report
