A week-long rout in Bitcoin deepened amid the recent broader retreat from risky assets in the wake of US President Donald Trump’s tariff threats and crypto sector turmoil, marking a dramatic reality check for one of the most popular Trump trades.

The original cryptocurrency tumbled as much as 7.2% to $78,226 at one point Friday, bringing its decline from the all-time high reached less than six weeks ago to 25%. Bitcoin has since pared the loss, and was trading little changed on the day. The weekly slide has put the digital currency on pace for its worst week since August.

This week’s drop in Bitcoin has taken it to technical levels that many traders watch for signs that the selloff may have gone too far, inspiring dip buyers to step in and at least pause the declines. 

Bitcoin has fallen below its 200-day moving average, a closely watched indicator of the long-term trend, for the first time since October. Its 14-day relative strength index, a gauge of price momentum, this week fell below a level indicating the asset is considered oversold for the first time since September.

Trump said Thursday that 25% tariffs on Canada and Mexico would come into force from March 4, undermining hopes he might reverse course after a previous delay. He also said Chinese imports would face a further 10% levy, prompting officials in Beijing to promise “all necessary measures” in response.

The focus on trade tensions had led to a broad risk-off decline across markets on Friday, pushing down almost all Asian stock markets and fueling declines in European futures. But cryptocurrencies — which are deeply exposed to shifts in risk appetite — were among the worst hit.

Bitcoin has now fallen more than 20% in February. If the decline holds through the end of Friday, it would mark the biggest monthly drop since June 2022.

The selloff underscores a swift change of fortunes for what was previously one of the most popular Trump trades in global markets: buying Bitcoin on the expectation that the president’s crypto-friendly approach would lead to a broad rally.

That worked for a while. Bitcoin hit its all-time high of $109,241 on Jan. 20, the day of Trump’s inauguration. But cryptocurrencies have recently come under pressure amid worries that Trump’s pugilistic approach to global trade could lead to broad pain.

Bearish sentiment this week has also hit spot US Bitcoin exchange-traded funds, with investors pulling out more than $1 billion on Tuesday, the biggest one-day outflow since their debut last year.

Trump has already made a few changes that have pleased crypto bulls, including putting crypto advocates in key positions. The Securities and Exchange Commission, which embarked on a yearslong crackdown under former Chair Gary Gensler, has also closed investigations into several crypto outfits in recent weeks.

Trump has said he wants to make the US “the crypto capital of the planet and the Bitcoin superpower of the world.”