Bitcoin Hits Lowest Point Since Trump’s Presidency

The price of Bitcoin has recently plummeted to around $60,000, which equates to approximately £44,000, marking its lowest value since September 2024. Although it experienced a minor recovery afterward, this significant decline persists even amid President Donald Trump’s outspoken endorsement of digital currencies. This downturn follows an extended period of impressive surges, highlighted by Bitcoin achieving an all-time peak of $122,200 back in October.

Joshua Chu, who serves as co-chair of the Hong Kong Web3 Association, commented that individuals who placed excessively large bets, took on too much debt through borrowing, or operated under the misconception that cryptocurrency values would perpetually rise are now confronting the stark realities of genuine market fluctuations and the critical importance of effective risk management strategies. Over the course of the last year, Bitcoin’s value has declined by roughly 32 percent, bringing it back to price points observed in the early months of 2024.

President Trump’s pro-cryptocurrency stance has played a notable role in shaping market sentiments in the past. This includes his initiative to introduce his own digital token and his advocacy for government-supported cryptocurrency reserves. Furthermore, under his leadership, specialized teams within his administration that were dedicated to enforcing cryptocurrency regulations were disbanded, and the Securities and Exchange Commission (SEC) adopted a more lenient approach to oversight in this sector.

Despite these supportive measures, financial experts point to several factors contributing to the current price drop. A key influence appears to be Trump’s decision to nominate Kevin Warsh for the position of Federal Reserve chair, which has sparked concerns over the potential implementation of stricter monetary policies. According to analysis from Deutsche Bank, interest from conventional investors in the cryptocurrency space is waning, and a broader sense of pessimism surrounding digital assets is on the rise. Meanwhile, projections from Stifel suggest that Bitcoin’s price might descend even further, potentially reaching as low as $38,000 in the near term.

The downturn has not been isolated to Bitcoin alone. Other prominent cryptocurrencies such as Ethereum and Solana have also experienced substantial losses, dropping by approximately 37 percent so far this year. According to data compiled by CoinGecko, the entire cryptocurrency market has shed more than $2 trillion in total market capitalization since its zenith in October. Industry specialists anticipate that such price volatility will persist, yet they also observe that Bitcoin and similar assets are transitioning into a phase of greater maturity. This evolution prompts investors to reassess and redefine the role these digital currencies play within the broader financial ecosystem.

This recent market correction serves as a poignant reminder of the inherent risks associated with cryptocurrency investments. Even with influential political backing, external economic signals—like anticipated shifts in Federal Reserve leadership and policy directions—can swiftly alter market dynamics. Traditional investors, who had begun warming to crypto assets amid favorable regulatory signals, now appear to be pulling back, contributing to the downward pressure on prices.

Chu’s remarks underscore a fundamental lesson for participants in this volatile arena: over-leveraging and unchecked optimism can lead to severe consequences when market conditions shift. The 32 percent annual decline in Bitcoin’s value illustrates how quickly gains can evaporate, reverting prices to levels from over a year prior. This pattern is not unfamiliar in cryptocurrency markets, which have long been characterized by dramatic swings rather than steady growth.

Trump’s earlier actions had fueled considerable optimism. The launch of his personal digital currency initiative captured widespread attention, symbolizing a high-profile embrace of blockchain technology at the presidential level. Coupled with proposals for federal cryptocurrency reserves, these steps suggested a future where digital assets might enjoy institutional legitimacy and protection similar to traditional fiat currencies. The dismantling of aggressive enforcement units and SEC leniency further reduced perceived barriers to entry, encouraging broader adoption.

Yet, the nomination of Kevin Warsh introduces a countervailing force. Warsh, a former Fed governor known for hawkish views on inflation, raises fears of interest rate hikes or reduced liquidity measures that could squeeze speculative assets like cryptocurrencies. Higher borrowing costs and tighter money supply typically favor safer investments over high-risk ones, explaining the retreat of traditional capital from the sector. Deutsche Bank’s assessment aligns with this view, highlighting diminishing enthusiasm among institutional players who prioritize stability.

Stifel’s dire forecast of a $38,000 bottom adds to the bearish outlook, potentially signaling a deeper correction if selling pressure intensifies. For Ethereum and Solana, the 37 percent year-to-date losses reflect correlated movements across the crypto ecosystem, where Bitcoin often sets the tone. The $2 trillion evaporation in market value since October underscores the scale of the reversal—from euphoric highs driven by policy optimism to sobering realities.

Looking ahead, experts predict ongoing turbulence but emphasize signs of maturation. As cryptocurrencies integrate more deeply into financial systems—through clearer regulations, improved infrastructure, and diversified use cases—they may exhibit reduced volatility over time. Investors are increasingly viewing Bitcoin not just as a speculative vehicle but as a potential store of value or hedge against traditional market weaknesses, prompting a more disciplined approach to portfolio allocation.

This episode also highlights broader economic interconnections. Cryptocurrency prices no longer operate in isolation; they respond to macroeconomic cues like Fed policy expectations, global liquidity trends, and shifts in investor risk appetite. Trump’s crypto enthusiasm provided a tailwind, but nominations and policy pivots demonstrate how quickly sentiment can flip. For market participants, the key takeaway is the necessity of robust risk assessment, diversified holdings, and avoidance of excessive leverage, especially in an asset class prone to sharp corrections.

The bounce from $60,000 offers tentative hope, but sustainability remains uncertain amid lingering uncertainties around monetary policy and investor confidence. As the market navigates this period of consolidation, observers will watch closely for indicators of renewed institutional interest or further regulatory clarity that could stabilize prices and foster long-term growth.