The value of bitcoin, the best-known cryptocurrency, has fallen sharply, wiping out all gains made since the re-election of US President Donald Trump in 2024. The drop is a continuation of a downward trend that began in mid-January. On Thursday morning bitcoin was trading at around $71,200, representing a loss of more than 65 on the day and nearly 20% since the start of the year.
Before the downturn, bitcoin had reached impressive heights. In December 2024, it crossed the $100,000 mark for the first time and repeated that feat in February and May 2025. However, since October 2025, when it reached a record high of more than $127,000, its value has steadily declined.
The initial rise in the value of bitcoin after Trump’s re-election was attributed to expectations that the US government would pursue a more relaxed regulatory policy towards digital assets. During his campaign, Trump had pledged to make the United States a world leader in cryptocurrency and had even set up his own crypto firm, World Liberty Financial, together with his sons. Shortly after taking office, he announced the creation of a strategic reserve that would include bitcoin and four other cryptocurrencies.
However, a draft law to regulate cryptocurrency trading ran into opposition in the US Senate due to disagreements between traditional banks and cryptocurrency firms. That uncertainty has cast a shadow over the sector’s future.
In addition, concerns have arisen about World Liberty Financial following reports of a $500 million deal (around €424 million) to sell a 49% stake in Trump’s company to representatives of an official from Abu Dhabi. Democratic lawmaker Ro Khanna has announced that he plans to investigate the matter.
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