Bitcoin sank below $80,000 for the first time in more than three months as a sell-off in the cryptocurrency sector gathered pace amid volatility in global markets, AFP reports.

The digital unit fell to $79,525.88 in early Asian trading, its lowest level since November 11 and a sharp drop from the record high of more than $109,000 seen just last month. 

The unit has seen a dizzying rally since Donald Trump's election victory in November, after he pledged in the campaign to loosen regulations around digital tokens and promised to make the US the cryptocurrency capital of the world.

Bitcoin's gains were in line with advances in global markets, but euphoria has dulled in recent weeks as the US president pursues a hardline policy of taxing partners with tariffs and threatening to spark a global trade war.

His promises on tax cuts and immigration have also stoked fears that he could reignite inflation, forcing the Federal Reserve to keep interest rates higher for longer than expected while the latest data shows the US economy is slowing. | BGNES