Bitcoin Falls to Pre-Trump Levels

Bitcoin has experienced a significant decline, dipping below $75,000 on Monday. This marks a return to levels not seen since before Donald Trump’s re-election as U.S. President. The drop is attributed to investor caution surrounding the digital asset market and stalled cryptocurrency legislation in the U.S.

Background on Bitcoin’s Rise and Fall

Bitcoin, the largest cryptocurrency globally, soared after Trump’s election in November 2024. At that time, he was perceived as a strong advocate for the cryptocurrency sector.

In December 2024, Bitcoin surpassed the $100,000 milestone. This achievement was publicly acknowledged by Trump, celebrating its growth during his administration.

However, in April 2025, Bitcoin fell below $75,000 following the announcement of comprehensive U.S. tariffs that unsettled global markets. The cryptocurrency later rebounded, hitting an all-time high of $126,251.31 in October 2025, before facing another downturn.

Regulatory Uncertainty

The current dip is largely driven by ongoing uncertainty regarding cryptocurrency regulations. In July 2025, Congress passed legislation focused on regulating stablecoins, which are cryptos backed by traditional assets. However, the comprehensive crypto legislative proposal, known as the Clarity Act, remains stalled in the Senate.

James Butterfill, a researcher at CoinShares, noted that expectations for progress on the Clarity Act have not been realized. He described this regulatory uncertainty as a significant headwind for crypto prices.

Impact of Leadership Changes

Bitcoin’s decline intensified after Trump announced the nomination of former Federal Reserve governor Kevin Warsh for the position of U.S. central bank chief. Warsh is perceived as a supporter of the Fed’s independence, which has reassured traditional markets. As a result, investors sold off safe-haven assets like gold and silver, whose values subsequently fell.

Many investors opted to liquidate cryptocurrencies and other high-risk assets to bolster cash reserves amidst this market volatility.

Controversies Surrounding Trump’s Crypto Connections

Trump’s close association with the cryptocurrency industry has sparked allegations of conflicts of interest. Since his return to office, he has promoted ventures related to digital assets. According to Bloomberg estimates, his family’s wealth increased by $1.4 billion in 2024, largely due to digital assets.

In a bold move, just hours before his inauguration on January 20, 2025, Trump introduced a new cryptocurrency, dubbed $TRUMP. Despite a strong launch, it has since plummeted by approximately 90% from its initial peak.

Conclusion

The current landscape for Bitcoin and other cryptocurrencies is precarious, fueled by regulatory delays and shifts in market sentiment. As investors reevaluate their holdings, it remains to be seen how the evolving political and financial environment will impact the future of digital currencies.