Bitcoin Slides Below $71K, Erasing Post-Election Gains
Kevin DuBitcoin plunged, erasing all post-Trump re-election gains, amid stalled regulation and a probe into Trump's crypto firm.
Bitcoin's price has dropped below the $71,000 mark, wiping out all gains accumulated since President Donald Trump's 2024 re-election. The leading cryptocurrency plunged over 7% on Thursday, extending a sharp decline that began in mid-January.
As of 04:30 GMT, Bitcoin was trading around $70,900. This latest slide brings the digital asset's total loss to nearly 20% since the start of the year.
From All-Time Highs to a Steep Correction
The current downturn follows a period of extreme volatility. Bitcoin first crossed the $100,000 threshold in December 2024 and revisited that price point in both February and May 2025. However, the asset has been on a largely downward trajectory since hitting an all-time high of more than $127,000 in October.
The earlier bull run was fueled by President Trump's re-election, which sparked market expectations for a lighter touch on digital asset regulation after years of government crackdowns.
Regulatory Hurdles and Political Scrutiny
During his campaign, Trump pledged to make the U.S. the world's cryptocurrency capital. Before winning the vote, he and his sons launched their own crypto firm, World Liberty Financial. Shortly after taking office, the administration announced plans for a strategic crypto reserve that would include Bitcoin and four other cryptocurrencies.
Despite these pro-crypto signals, a Trump-backed bill to regulate cryptocurrency trading has stalled in the U.S. Senate. Disagreements between traditional banks and crypto firms have created a legislative deadlock, casting a shadow of uncertainty over the industry.
Adding to market jitters, Democratic lawmaker Ro Khanna announced on Wednesday that he would investigate World Liberty Financial. The move followed a report from The Wall Street Journal stating that representatives of an Abu Dhabi official had signed a $500 million deal to acquire a 49 percent stake in Trump's new crypto venture.
Broader Markets Feel the Pressure
The negative sentiment was not confined to crypto. Equities and commodities markets also posted significant losses on Thursday, indicating a wider risk-off mood among investors.
• Silver: Dropped by as much as 16%.
• Hong Kong Stocks: The benchmark index fell by approximately 1.3%.
• Japanese Stocks: The benchmark index declined by about 0.7%.
