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Bitcoin fell below the $70,000 mark, slipping to its lowest level since Donald Trump won the US presidential election in November 2024. The world’s largest cryptocurrency dropped to an intraday low of $69,821 before recovering slightly to trade back above $70,000.

The decline reflects a broader retreat from risk across global markets. In recent weeks, investors have reduced exposure to volatile assets, prompting a sharp pullback in cryptocurrencies after a strong run earlier in the year. Bitcoin had surged to a record high above $126,000 in October, fuelled by optimism around political support and expectations of lighter regulation.

Market commentators point to a wider risk-off environment as a key driver. Interactive Investor’s head of investment, Victoria Scholar, said the cryptocurrency is being dragged lower by geopolitical tensions and investor caution, with capital rotating towards perceived safe havens.

Bitcoin’s rally accelerated following Trump’s election victory, as he was widely regarded as favourable towards the digital asset sector. He publicly welcomed the cryptocurrency surpassing $100,000 in December 2024. That optimism later faded. In April, prices dropped below $75,000 after the US administration announced broad trade tariffs, unsettling financial markets.

Although bitcoin recovered strongly and reached a new peak six months later, the current downturn has been linked to renewed regulatory concerns. While the United States Congress approved legislation in July to regulate stablecoins, wider reforms remain unresolved. The proposed Clarity Act, intended to establish a comprehensive framework for the crypto industry, has stalled in the Senate, leaving investors uncertain about the sector’s long-term regulatory direction.

Further pressure followed Trump’s nomination of Kevin Warsh to lead the US central bank. Seen as a strong advocate of central bank independence, Warsh’s appointment reassured traditional markets. That shift encouraged selling in assets previously used as hedges, including gold, silver and cryptocurrencies, as investors sought liquidity.

Trump’s close association with the crypto industry has also attracted scrutiny. He has actively promoted crypto-related ventures since returning to office, leading to claims of potential conflicts of interest. According to estimates from Bloomberg, digital assets added around $1.4 billion to his family’s wealth last year.

In the hours before his inauguration in January 2025, Trump launched his own cryptocurrency, known as $TRUMP. Despite a high-profile debut, the token later lost momentum, adding to the volatility that continues to characterise the sector.

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