Bitcoin Price Hits Lowest Level Since Trump Took Office

The price of Bitcoin has plummeted to its lowest point in 16 months, reaching a low of $60,000 (£44,000) per coin, a level not seen since September 2024. This significant downturn occurred despite the vocal and personal endorsement of cryptocurrencies by US President Donald Trump, a stark contrast to the soaring valuations that characterized the market in the preceding months, with Bitcoin reaching an all-time high of $122,200 in October 2025. The dramatic price reversal serves as a harsh reminder of the inherent volatility within the cryptocurrency market, as Joshua Chu, co-chair of the Hong Kong Web3 Association, remarked to Reuters, "Those who bet too big, borrowed too much or assumed prices only go up are now finding out the hard way what real market volatility and risk management look like."

For a considerable period, investors found encouragement in President Trump’s active engagement with the digital asset sector. His outspoken support, coupled with promises of deregulation and a more favorable legislative environment for the industry, fueled a surge of optimism and investment. Trump’s personal brand of cryptocurrency, launched in his first year back in office in January 2025, funneled a significant portion of its profits directly into his own companies. Furthermore, his continued involvement with World Liberty Financial, a Trump family-owned investment vehicle for various crypto assets, underscored his deep commitment to the space. Early actions in his second term included an executive order aimed at positioning the US as the "crypto capital of the planet." He also signed legislation to bolster federal support for cryptocurrencies, dissolved a Department of Justice task force focused on crypto regulation enforcement, and the Securities and Exchange Commission (SEC) significantly scaled back its crypto-related enforcement actions and investigations. However, this "pro-crypto agenda" has drawn scrutiny. In November, Democrats on the Senate Judiciary Committee highlighted that President Trump had amassed crypto holdings valued at over $11 billion and had personally profited an estimated $800 million from crypto transactions since assuming office.

The recent decline, with Bitcoin prices down approximately 32% over the last 12 months, is now trending towards levels last observed in early 2024 and 2021. This downward trajectory has also impacted other major cryptocurrencies; Ethereum and Solana have both experienced declines of roughly 37% year-to-date in 2026. According to CoinGecko, a cryptocurrency data aggregator, the broader crypto market has shed over $1 trillion in value in the past month alone, and a staggering $2 trillion since its peak in October.

Several factors are being cited as catalysts for this sharp correction. Analysts at Deutsche Bank, in a note published on Wednesday, attributed the immediate drop to President Trump’s nomination of Kevin Warsh as the new chair of the Federal Reserve. The prevailing sentiment is that Warsh’s tenure is likely to usher in a more "hawkish" monetary policy, characterized by higher interest rates, which generally dampens investor appetite for riskier assets like cryptocurrencies. Deutsche Bank further observed a four-month trend of declining Bitcoin prices, accompanied by a growing tide of negative sentiment surrounding the cryptocurrency market as a whole. "This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing," the bank stated.

While Deutsche Bank does not foresee the complete disappearance of cryptocurrencies, they are not projecting a return to the Trump-fueled highs seen previously. The bank suggests that Bitcoin is transitioning from a purely speculative asset to a more mature phase, where it must establish its specific utility and role within the broader financial landscape. William Barhydt, CEO of Abra Capital Management, an investment firm specializing in crypto assets, shares the view that the cryptocurrency market is maturing. However, he remains optimistic about a potential rebound. "I wouldn’t say that it has to rebound, but I can’t see how it doesn’t," Barhydt commented, emphasizing that significant price swings are not unprecedented for Bitcoin. He added, with a touch of foresight, "The only way it doesn’t is if we end up in some kind of war."

Further compounding the bearish outlook, Stifel, a US-based investment and research firm, has issued a forecast suggesting that Bitcoin prices could potentially fall as low as $38,000. This prediction is underpinned by an emerging trend where the price of Bitcoin is exhibiting a closer correlation with the fluctuations of the US Dollar, a sign that the digital asset may be undergoing a fundamental re-evaluation of its value proposition and its relationship with traditional currency markets.

The market’s current state is a stark departure from the optimism that characterized the early stages of Trump’s second presidential term. While the allure of deregulation and presidential endorsement initially propelled Bitcoin to record highs, the inherent risks and speculative nature of the asset class, now coupled with a shift towards tighter monetary policy, have led to a significant market correction. The Financial Conduct Authority (FCA) in the UK reported in 2025 that approximately 8% of UK adults were investing in crypto, a decrease of 4% from the previous year. Despite the drop in investor numbers, the average amount held by individuals had increased, with one in five holding between £1,000 and £5,000 in digital currencies. This suggests a more consolidated, though potentially more vulnerable, investor base. The long-term trajectory of Bitcoin and the broader cryptocurrency market remains a subject of intense debate, with analysts and investors closely watching macroeconomic indicators, regulatory developments, and the evolving utility of these digital assets.