Bitcoin extended its recent selloff on Thursday, falling below the $71,000 mark and wiping out all gains accumulated since Donald Trump won re-election in 2024.
The world’s largest cryptocurrency dropped more than 7 percent during the session, adding to a week of sharp declines that began in mid-January. As of 04:30 GMT, bitcoin was trading at around $70,900.
The latest move leaves bitcoin down nearly 20 percent since the start of the year, underscoring the asset’s notorious volatility.
From Record Highs to Steep Declines
Bitcoin reached $100,000 for the first time in December 2024 and again crossed that threshold in February and May 2025. However, prices have mostly trended lower since October, when the cryptocurrency peaked at an all-time high above $127,000.
The rally late last year was fuelled by optimism that Trump’s return to the White House would usher in a more permissive regulatory environment for digital assets, following years of tighter oversight in the United States.
During his campaign, Trump pledged to make the US the global hub for cryptocurrencies. He also launched a crypto venture, World Liberty Financial, alongside his sons ahead of the election.
Soon after taking office, Trump announced plans for a strategic cryptocurrency reserve that would include bitcoin and four other digital tokens, further boosting market sentiment at the time.
Regulatory Uncertainty Weighs on Markets
More recently, enthusiasm has faded as legislative progress stalled. A Trump-backed bill aimed at regulating cryptocurrency trading has become bogged down in the US Senate amid disagreements between traditional banks and crypto firms, raising doubts about the industry’s near-term outlook.
Adding to the uncertainty, Democratic lawmaker Ro Khanna said on Wednesday he would examine World Liberty Financial after The Wall Street Journal reported that representatives of an Abu Dhabi official had signed a $500m deal to acquire a 49 percent stake in the venture.
Broader Market Weakness
The downturn in digital assets coincided with losses across other markets on Thursday. Silver prices dropped as much as 16 percent, while benchmark stock indexes in Hong Kong and Japan fell about 1.3 percent and 0.7 percent, respectively.
Together, the moves reflect growing caution among investors as uncertainty over regulation, geopolitics and global economic conditions weighs on risk-sensitive assets.