Bitcoin Crashes to Lowest Level Since Trump Took Office
Bitcoin falls 32% to $66K as Trump-backed crypto frenzy cools. Analysts warn traditional investors are losing interest, fueling market-wide pessimism.
Despite US President Donald Trump's personal and public support for cryptocurrencies, the price of Bitcoin has fallen to its lowest level in 15 months.
The price of one Bitcoin is now $66,000 (£48,700), its lowest level since October 2024, and a 24% drop since the beginning of the year.
This decline follows months of surging Bitcoin prices, which saw the cryptocurrency reach an all-time high of $122,200 in October.
Investors had been buoyed by Trump's involvement in the sector and his outspoken support for cryptocurrencies, along with promises to ease regulations on the industry.
One of Trump's first acts upon returning to the White House in January 2025 was an executive order aimed at making the US the "world's crypto capital."
In his first year back in office, Trump launched his own personal brand of cryptocurrency, with much of the profits going to his own companies. He also continued his partnership with World Liberty Financial, an investment company for other crypto assets owned by the Trump family.
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So far during the Trump administration, he has signed legislation providing federal support for cryptocurrencies, disbanded the Department of Justice team focused on enforcing crypto regulations, and the Securities and Exchange Commission has ceased its crypto-related enforcement actions and investigations.
In November, Democrats on the Senate Judiciary Committee criticized Trump's "pro-crypto agenda," noting that the president had accumulated over $11 billion in crypto holdings since taking office and earned $800 million in personal income from crypto transactions.
With Thursday's drop, Bitcoin prices have fallen 32% in the last 12 months and are trending towards the prices seen in early 2024 and 2021. Bitcoin is the world's largest and most well-known cryptocurrency, a form of digital money that is not controlled by any centralized financial institution.
Bitcoin prices are volatile, but Deutsche Bank analysts said in a note on Wednesday that the recent decline was due to President Trump's nomination of Kevin Warsh as the new chairman of the Federal Reserve.
Deutsche Bank noted that Bitcoin prices have been trending downward for the past four months, and that negative sentiment surrounding the cryptocurrency is growing. "In our view, this persistent selling is an indication that traditional investors are losing interest, and overall disillusionment with crypto is increasing," it said.
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While Deutsche Bank doesn't expect crypto to disappear, it also didn't predict that Bitcoin would return to its Trump-era highs.
The bank said the digital token is moving from being a "purely speculative asset" to a more realistic phase, as an asset that "needs to find its specific role."
Other popular cryptocurrencies include Ethereum and Solana. Both have seen their prices fall by approximately 37% so far in 2026.
According to CoinGecko, which tracks the performance of thousands of cryptocurrencies, more than $1 trillion in market value was lost in the past month alone, and $2 trillion has been lost since the market peaked in October.
Stifel, a US investment and research firm, told investors in a note that Bitcoin prices could fall to $38,000. The firm pointed to a new trend of cryptocurrencies more closely following the price of the US dollar.
Last week, the dollar fell to its lowest level in four years.
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