Bitcoin Slips Below $70,000 as Trump-Era Gains Evaporate

 

NEW YORK – Bitcoin fell below the $70,000 threshold on Thursday for the first time since Donald Trump’s election victory in November 2024, underscoring a sharp reversal in investor sentiment as regulatory uncertainty and broader risk aversion grip global markets.

The world’s largest cryptocurrency slid as low as $69,821, according to market data, before trimming some losses. The drop marks a symbolic break below a level that had held for months, even as volatility rippled through financial markets following Trump’s return to the White House.

Analysts point to a convergence of political and macroeconomic factors. Chief among them is growing uncertainty around U.S. crypto regulation, including the stalled Clarity Act, which had been expected to provide long-awaited guidance for digital asset markets. The situation has been compounded by Trump’s nomination of Kevin Warsh to lead the Federal Reserve, reigniting fears of a more restrictive monetary stance.

“Bitcoin continues to suffer,” said Victoria Scholar, head of investment at Interactive Investor. “It’s caught up in the broader risk-off mood and geopolitical tensions that are pushing investors away from speculative assets and toward traditional safe havens.”

The sell-off extends beyond Bitcoin. Investors have pulled capital from risk-heavy positions in recent weeks, triggering widespread liquidations across the crypto sector. Bitcoin is now down nearly 8% for the week, reversing gains accumulated during the post-election rally.

The move is especially striking given Bitcoin’s recent highs. The digital asset surged above $126,000 in October, buoyed by expectations of a friendlier regulatory environment under Trump. That optimism has since faded, particularly after turbulence surrounding politically themed tokens such as $TRUMP, which amplified concerns about speculative excesses in the market.

Trump’s personal exposure to crypto has also drawn attention. Bloomberg estimates suggest that his family’s fortune grew by roughly $1.4 billion last year, partly linked to digital assets — a connection that has heightened market sensitivity to political signals from Washington.

For now, analysts say Bitcoin’s trajectory will depend less on ideology and more on policy clarity. Until investors gain a clearer view of U.S. regulation and the Federal Reserve’s direction, volatility is likely to remain a defining feature of the market.

FAQs

Why did Bitcoin fall below $70,000?
The drop is driven by regulatory uncertainty in the U.S., fears of tighter monetary policy, and a broader shift away from risky assets.

What role does Donald Trump play in the market reaction?
Trump’s return to office raised expectations of crypto-friendly policies, but stalled legislation and key appointments have unsettled investors.

What is the Clarity Act and why does it matter?
The Clarity Act aims to define regulatory rules for crypto in the U.S. Its delay has increased uncertainty for investors and institutions.

Is this move part of a larger market trend?
Yes. Crypto markets are experiencing a wider sell-off as investors reduce exposure to risk amid geopolitical and economic concerns.

Could Bitcoin recover above $70,000 soon?
That depends on regulatory developments and macroeconomic signals, particularly from the Federal Reserve.

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