Crypto slide: Bitcoin falls below $70,000 for first time since Donald Trump election win, risk-off mood weighs
Bitcoin slipped below $70,000 on Thursday for the first time since Donald Trump’s election victory in November 2024, as the world’s largest cryptocurrency remained under pressure from a broader pullback in risk assets, AFP reported.The cryptocurrency dropped to as low as $69,821.18 before moving back above the $70,000 level. The decline comes after Bitcoin had touched a record high above $126,000 in October.“Bitcoin continues to suffer… caught up in the broader risk-off mood and geopolitical turmoil that has pushed investors away from riskier assets towards safe havens,” said Victoria Scholar, head of investment at Interactive Investor.Bitcoin had surged following Trump’s election, as he was widely viewed as supportive of the crypto sector. He had also publicly celebrated Bitcoin crossing $100,000 for the first time in December 2024.The cryptocurrency, however, has seen sharp swings. In April last year, Bitcoin fell below $75,000 after Trump announced sweeping US tariffs that rattled global markets. It later rebounded and hit a record high of $126,251.31 six months later.The latest weakness has also been linked to regulatory uncertainty. While the US Congress passed a law in July to regulate stablecoins, a broader cryptocurrency bill, the Clarity Act, remains stalled in the Senate.Bitcoin has also been hit by Trump’s nomination of former Federal Reserve governor Kevin Warsh to head the US central bank. Warsh is seen by observers as a defender of the Fed’s independence, which reassured traditional markets and prompted investors to sell safe-haven assets such as gold and silver, whose prices fell.Investors have also sold cryptocurrencies and other risk assets to raise cash, adding to pressure on digital tokens.Trump’s close ties to the crypto sector have also drawn criticism, as he has promoted his own cryptocurrency-related ventures since returning to office. Bloomberg estimates said his family’s fortune grew by $1.4 billion last year from digital assets.Hours before his inauguration in January 2025, Trump launched his own cryptocurrency, $TRUMP, which later fell after an initial surge following its debut.
