BITCOIN SLIDES BELOW $70,000 FOR FIRST TIME SINCE TRUMP’S 2024 ELECTION VICTORY
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Agency Report. O.
Bitcoin, the world’s largest cryptocurrency, on Thursday fell below the $70,000 mark for the first time since former US President Donald Trump’s election victory in November 2024, extending a sharp downturn that has rattled digital asset markets in recent weeks.
The cryptocurrency dropped as low as $69,821.18 before recovering slightly to trade above $70,000, underscoring heightened volatility and waning investor confidence.
Bitcoin has been under sustained pressure as investors retreat from riskier assets amid geopolitical tensions and global market uncertainty. The digital currency had surged to an all-time high of $126,251.31 in October, buoyed by optimism surrounding Trump’s perceived pro-cryptocurrency stance.
“Bitcoin continues to suffer, caught up in the broader risk-off mood and geopolitical turmoil that has pushed investors away from riskier assets towards safe havens,” said Victoria Scholar, Head of Investment at Interactive Investor.
Following Trump’s election, Bitcoin rallied strongly, with the former president publicly celebrating the asset’s surge past $100,000 for the first time in December 2024. However, the momentum proved short-lived.
In April last year, Bitcoin suffered a major setback, falling below $75,000 after Trump announced sweeping US tariffs that unsettled global financial markets. Although the cryptocurrency later rebounded to record highs, the latest slump reflects mounting concerns over regulation and monetary policy.
Market analysts point to regulatory uncertainty as a key driver of the decline. While the US Congress passed legislation in July to regulate stablecoins, broader cryptocurrency reforms under the proposed Clarity Act have stalled in the Senate.
Bitcoin has also been impacted by Trump’s recent nomination of former Federal Reserve governor Kevin Warsh as head of the US central bank. Warsh’s perceived defence of the Fed’s independence reassured traditional markets, prompting investors to rotate out of assets such as cryptocurrencies, gold, and silver, all of which recorded sharp declines.
Additionally, many investors reportedly sold off digital assets to raise cash amid tightening financial conditions.
Trump’s close association with the crypto industry has also attracted controversy. Critics have raised concerns about potential conflicts of interest, as the former president has actively promoted cryptocurrency-related ventures since returning to office.
According to Bloomberg estimates, Trump’s family fortune reportedly grew by $1.4 billion last year from digital assets alone. Just hours before his inauguration in January 2025, the 79-year-old billionaire launched his own cryptocurrency, $TRUMP, which later slumped after an initially explosive debut.
The latest price drop highlights the fragile state of the cryptocurrency market as it navigates regulatory headwinds, political uncertainty, and shifting investor sentiment.
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