Why Bitcoin Plummeted to 15-Month Low Despite Trump’s Crypto Boost
Bitcoin’s Shocking Drop Shakes the Crypto World
Bitcoin has taken a big hit. It fell to its lowest price in 15 months, sitting at just $66,000. This is a sharp fall from its all-time high of $122,200 back in October. Even with strong support from US President Donald Trump, the king of cryptocurrencies is struggling.
The price is down 24% since the start of the year. Over the last 12 months, it’s dropped 32%. This puts it close to levels seen in early 2024 and 2021. What’s going on? Let’s break it down.
Trump’s Big Push for Crypto
President Trump has been a huge fan of crypto since he returned to the White House in January 2025. He issued an executive order right away to make the US the “crypto capital of the planet.”
He even launched his own cryptocurrency brand. Profits from it go mostly to his companies. His family also runs World Liberty Financial, a platform for investing in other crypto assets.
Under his watch, the government passed laws to back cryptocurrencies with federal support. The Department of Justice lost its crypto enforcement team. The Securities and Exchange Commission stopped most crypto investigations.
Democrats in the Senate called this a “pro-crypto agenda.” They pointed out Trump’s crypto holdings are worth over $11 billion. He has made $800 million in personal income from crypto deals since taking office.
At first, this excitement drove Bitcoin to new highs. Investors loved the pro-crypto vibe and promises of lighter rules.
What Triggered the ?
Bitcoin prices have been falling for four months straight. Analysts at Deutsche Bank say the latest drop was sparked by Trump’s pick for Federal Reserve chair: Kevin Warsh.
Warsh is seen as “hawkish.” That means he might keep interest rates high. High rates hurt risky assets like crypto. Loose money policies usually boost them.
Deutsche Bank notes growing bad feelings about crypto. Traditional investors are selling off. They say Bitcoin is shifting from a wild bet to something that must prove its real value.
The whole crypto market is hurting. CoinGecko shows a loss of $1 trillion in the last month alone. Since the October peak, it’s down $2 trillion.
Ethereum and Solana, two top coins, have dropped 37% this year. Bitcoin is leading the pack lower.
Expert Views on the Crypto Slump
Deutsche Bank doesn’t think crypto will vanish. But they doubt it will hit Trump-era highs soon. It’s maturing into a more serious asset class.
William Barhydt, CEO of Abra Capital Management, sees ups and downs as normal for Bitcoin. “I can’t see how it doesn’t rebound,” he said. Unless a major war breaks out, he expects a comeback.
Stifel, an investment firm, warns of more pain. They predict Bitcoin could sink to $38,000. Why? Crypto prices are now tracking the US dollar closely. The dollar hit a four-year low last week.
- Key Factors:
- High interest rate fears from new Fed chair.
- Traditional investors pulling out.
- Market losing $2 trillion since peak.
- Bitcoin tying to dollar movements.
Bitcoin Basics: Why It’s So Volatile
Bitcoin is the biggest cryptocurrency. It’s digital money with no central bank control. People use blockchain tech to track it securely.
Prices swing wildly because it’s speculative. News, rules, and big investors can move it fast. Trump’s support was a boost, but macro factors like rates matter more now.
Is This the End for Crypto? Or a Buying Chance?
History shows Bitcoin bounces back from drops. After 2018 and 2022 crashes, it soared higher. Trump’s pro-crypto steps could help long-term.
But risks remain. Hawkish Fed policy, weak dollar ties, and fading hype could push prices lower. Watch for rate cuts or new Trump wins to spark recovery.
Investors should stay cautious. Diversify and don’t bet what you can’t lose. Crypto is maturing, but volatility is here to stay.
What’s Next for Era?
Despite the slump, Trump’s vision could reshape crypto. Easier rules and US leadership might draw big money back. If Bitcoin holds $66,000 support, a rebound to $80,000+ is possible.
Keep an eye on Fed moves, dollar strength, and global events. Bitcoin’s story is far from over.
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