Bitcoin has fallen to its lowest level since Donald Trump returned to the White House, underscoring the growing disconnect between political support for cryptocurrencies and market reality.
The world’s largest digital asset dropped to around $60,000, its weakest level in roughly 16 months, before recovering slightly. The move marks a sharp reversal from the rally that carried bitcoin to a record high above $122,000 in October 2025, fueled in part by optimism surrounding Trump’s outspoken backing of the crypto sector.
Market participants say the selloff reflects the unwinding of excessive risk-taking built up during last year’s surge. Joshua Chu, co-chair of the Hong Kong Web3 Association, said investors who assumed prices would continue rising indefinitely are now being forced to confront the volatility that defines crypto markets.
Bitcoin is now down about 32% over the past 12 months, drifting back toward price levels last seen in early 2024 and even 2021. The decline comes despite a series of policy moves by the Trump administration aimed at positioning the United States as a global hub for digital assets.
Since taking office in January 2025, Trump has issued an executive order declaring the goal of making the U.S. the “crypto capital of the planet.” He has also launched a personal cryptocurrency brand and maintained ties to World Liberty Financial, a Trump family-backed investment vehicle focused on digital assets. His administration has rolled back regulatory enforcement, including scaling down crypto-focused efforts at the Department of Justice and easing the Securities and Exchange Commission’s oversight stance.
These actions have drawn criticism from Democrats, who have raised concerns about conflicts of interest. Lawmakers on the Senate Judiciary Committee said last year that Trump’s crypto holdings were valued at more than $11 billion, with hundreds of millions of dollars in personal income generated from crypto-related activity since his return to office.
Analysts point to macroeconomic factors as a key driver behind bitcoin’s recent weakness. Economists at Deutsche Bank said the downturn was triggered in part by Trump’s nomination of Kevin Warsh as chair of the Federal Reserve. Warsh is widely viewed as more hawkish on inflation, a stance that could keep interest rates higher for longer, reducing the appeal of speculative assets such as cryptocurrencies.
Deutsche Bank also noted that bitcoin has been trending lower for four consecutive months, accompanied by waning interest from traditional investors. The bank described the current phase as a transition away from pure speculation, arguing that crypto assets are being forced to define a clearer long-term role within the global financial system.
Some industry executives remain optimistic. William Barhydt, chief executive of Abra Capital Management, said sharp price swings are part of bitcoin’s maturation process and predicted a rebound unless a severe global shock derails markets entirely.
The downturn has not been limited to bitcoin. Other major tokens such as ether and solana have each fallen by more than a third so far in 2026. According to CoinGecko, the total cryptocurrency market has shed more than $1 trillion in value over the past month and roughly $2 trillion since peaking last October.
Looking ahead, analysts at Stifel have warned that bitcoin could fall as low as $38,000 if selling pressure persists. They highlighted a growing tendency for crypto prices to track movements in the U.S. dollar more closely, a shift that challenges the long-held narrative of bitcoin as an independent hedge.
