Bitcoin Tumbles Under $67K: Erasing All Post-Trump Election Gains in Crypto Meltdown
Bitcoin’s wild ride has hit a rough patch. The top cryptocurrency has
The Sharp Decline: From Record Highs to Reality
Bitcoin reached a stunning peak of $126,210.50 on October 6, before the election buzz really kicked in. After Trump secured his second term, prices climbed higher for months. Investors bet on a pro-crypto White House. But now, all those gains are gone. As of recent trading, Bitcoin sits at around $66,300 – lower than pre-election levels.
This <11% drop in a single day> continues a months-long slide. What was once called “digital gold” has lost nearly half its value from that October top. The fall has wiped out hopes of endless upside tied to political shifts.
Why Is Bitcoin Falling So Hard?
Several factors are fueling this crypto rout. First, investors are fleeing risky assets. Gold, silver, and digital currencies like Bitcoin are seeing heavy selling. Broader market worries play a big role too. U.S. stocks started the year shaky due to tariffs and clashes between Trump and the Federal Reserve. But stocks rebounded, while crypto lags behind.
Regulation fears linger despite Trump’s support for crypto firms. The White House recently hosted banks and crypto companies to talk stablecoin rules. Crypto wants to offer yields on deposits, but banks say no. They fear losing customer money to crypto accounts. With no bill moving in Congress, uncertainty grows.
ETF Outflows Signal Investor Panic
Spot Bitcoin ETFs make it easy to invest in Bitcoin without owning it directly. But data shows big redemptions. Investors pulled out about $5.7 billion from November to January. This cash exit adds pressure on prices.
- ETFs saw record inflows post-election.
- Now, fear has flipped the script.
- Traditional investors are cashing out gains.
Crypto Stocks Take a Beating
The pain spreads to related companies. Coinbase Global shares dropped 9.1%. Robinhood Markets, popular for crypto trading, fell 8.1%. Bitcoin miner Riot Platforms lost 10%.
MicroStrategy, a major Bitcoin holder, tumbled 13%. The firm owns 713,502 Bitcoins at an average cost over $76,000 each. At current prices, their holdings are worth $47.8 billion – underwater compared to the $54.3 billion cost.
Even Trump-linked ventures suffer. American Bitcoin, backed by Eric Trump and Donald Trump Jr., fell 6.6% and is down over 80% since early October. World Liberty Financial token ($WLFI) dropped from $6 billion to $3.25 billion market cap. The $TRUMP meme coin? It’s at $3.93, way off its $45 pre-inauguration price.
Trump’s Crypto Push Meets Market Reality
Trump campaigned as crypto’s champion. Vice President Vance urged crypto fans to stay politically active. Yet, prices tell a different story. Election hype drove a bubble. Now, real-world issues like regulation stalls and economic shifts burst it.
Banks resist crypto yields. Congress drags on stablecoin laws. Miners face higher costs if prices stay low. Treasury firms like MicroStrategy hold massive bags, risking more pain.
What Does This Mean for Bitcoin’s Future?
Short-term, more volatility looms. Support levels near $60,000 could test next. But long-term bulls point to Trump’s pro-crypto stance. Expect clearer rules eventually. ETFs might see inflows again if markets stabilize.
Investors should watch:
- Fed rate moves and tariff impacts.
- Congress on stablecoins.
- Bitcoin halving effects from earlier this year.
- Adoption by big firms.
This dip echoes past cycles. Bitcoin has rebounded from worse. But timing the bottom is tough. Diversify, use dollar-cost averaging, and stay informed.
Lessons for Crypto Investors
Politics boosts hype but doesn’t guarantee prices. Speculative assets swing wild. Even “digital gold” faces headwinds from macro forces. Trump-era gains showed promise, but
Keep eyes on fundamentals. Bitcoin’s network grows. Adoption rises. This could be a buy-the-dip moment for patient holders.
Stay tuned for updates as crypto navigates this storm.
