The price of Bitcoin has fallen below $65,000 for the first time since Donald Trump, who has repeatedly stated his support for cryptocurrencies, became the US president for the second time. What is the reason for the drop in BTC?
The price of Bitcoin has fallen below $65,000 for the first time since Donald Trump, who has repeatedly stated his support for cryptocurrencies, became the US president for the second time. What is the reason for the drop in BTC?
Yesterday, Bitcoin fell below $70,000 for the first time since 2024, but it has not held near that level. According to CoinDesk, the price of BTC briefly fell to around $60,000 but then resumed its rise and is currently hovering around $65,000.
The Financial Times reports that the world’s largest cryptocurrency has fallen by more than 7% as digital assets have been hit by a «sell-off» in tech stocks.
The downward spiral was fueled by automatic liquidations of positions by traders who were forced to sell their assets to avoid losing money. According to Coinglass, more than $2 billion in long and short positions in cryptocurrencies were liquidated this week.
According to crypto experts, the rapid reduction in positions indicates a loss of interest from traditional investors and growing pessimism about cryptocurrencies. According to CoinGecko, since October the cryptocurrency market has shrunk from $4.4 trillion to $2 trillion; about $800 billion was lost in the last month alone.
Reuters, citing cryptocurrency market analysts, writes that the rapid decline in the value of cryptocurrencies has triggered the nomination of Kevin Warsh for the post of Fed chairman due to expectations of reducing the regulator’s balance sheet. The sentiment towards cryptocurrencies has also been affected by the recent sell-off in precious metals and stocks.
«Bitcoin’s return to $60,000 does not mean the demise of cryptocurrency; it is just a bill to be paid by treasuries and funds that viewed Bitcoin as a one-sided asset with no real risk controls, just as we saw sharp corrections in self-proclaimed safe-haven assets like gold and silver when leverage and narrative outpaced reality,» said Joshua Chu, co-chair of the Hong Kong Web3 Association.
Another factor behind the rapid decline in the value of cryptocurrencies is the massive withdrawal of funds from Bitcoin ETFs. Since the decline in October 2025, billions of dollars have been withdrawn from these funds every month. Deutsche Bank analysts indicate that they experienced an outflow of funds in the amount of more than $3 billion in January, after an outflow of about $2 billion and $7 billion in December and November, respectively.
Bitcoin has been on the rise since Trump won the election, promising to make the US the «cryptocurrency capital of the world» and to lift heavy regulatory restrictions on the cryptocurrency industry. Since then, the Trump administration has promoted pro-crypto legislation, and regulators have lifted restrictions on cryptocurrency, leading to a record Bitcoin price surge last summer to over $125,000.
However, it has since declined as the wave of enthusiasm generated by Trump began to wane and investors instead turned to precious metals as a long-term store of value, leading to record highs in gold and silver prices.
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