Bitcoin Tumbles, Wiping Out Gains Since Trump Election
Bitcoin has experienced a significant decline in value, dropping nearly 20% since the start of 2026. The cryptocurrency fell below $71,000, continuing a downward trend that began in mid-January. This week alone, Bitcoin lost more than 7% of its value.
Impact of Trump’s Re-Election
The recent price drop has erased all gains Bitcoin accumulated following the re-election of U.S. President Donald Trump in 2024. After Trump’s victory, optimism surged regarding light regulations for digital currencies, which fueled Bitcoin’s price during late 2024 and early 2025.
Recent Price Trends
- Bitcoin was trading at approximately $70,900 as of 04:30 GMT.
- The cryptocurrency had peaked at $100,000 in December 2024 and maintained this level into early 2025.
- Its all-time high surpassed $127,000 in October 2025.
Regulatory Environment and Industry Doubts
Despite initial growth, Bitcoin and other cryptocurrencies now face uncertainty amid stalled regulatory efforts. President Trump had called for the U.S. to become the world’s cryptocurrency center and established a strategic crypto reserve that included Bitcoin and other digital assets.
However, a proposed bill for cryptocurrency trading regulation has stalled in the U.S. Senate, creating tension between banks and cryptocurrency firms. This uncertainty is causing concerns throughout the industry.
Investigations and Market Reactions
Democrat lawmaker Ro Khanna has announced plans to investigate Trump’s crypto venture, World Liberty Financial, following reports of a significant investment deal involving an Abu Dhabi official. The deal, valued at $500 million, gives the official a 49% stake in the company.
Broader market conditions also appear unfavorable. On the same day as Bitcoin’s plunge, silver prices fell by over 16%, while stock indexes in Hong Kong and Japan reported losses of approximately 1.3% and 0.7%, respectively.
As Bitcoin tumbles, wiping out its recent gains since Trump’s re-election, traders and investors watch the evolving landscape of cryptocurrency regulation closely.
