Summary
- Currently, Bitcoin is trading below its mark from Election Day 2024 as its decline continues this week.
- The leading cryptocurrency dipped under $60,000 for the first time since 2024, now sitting about 52% lower than its peak.
- While Trump claimed he would "never let crypto down," his influence on the markets seems to have diminished.
In the aftermath of President Donald Trump’s 2024 reelection, the demand for Bitcoin was associated with the so-called “Trump Trade,” reflecting the hope for a more crypto-friendly administration and supportive policies.
Initially, investors saw significant gains.
However, nearly two years later, traders are now faced with losses, as Bitcoin trades lower than its Election Day price. It was last seen at $60,619, which is about 12.6% below its closing value of approximately $69,355 on November 5, 2024, the day of the election.
On the eve of the election, BTC closed at around $67,793, according to CoinGecko data. The following day, it surged to an all-time high exceeding $75,000, and analysts anticipated further increases in the upcoming months, which proved accurate as Bitcoin reached approximately $109,000 in January after Trump’s inauguration.
In the first year of Trump's second term, a strong demand for Bitcoin ETFs, which rose from about $37 billion in assets under management in January 2025 to over $62 billion at its peak, contributed to Bitcoin's price increase.
The trend of digital asset treasuries (DAT), driven by Michael Saylor’s strategy, also fueled demand as public companies sought to integrate Bitcoin into their financial portfolios. Notably, Trump’s own Trump Media and Technology Group (DJT) acquired $2 billion in BTC and related securities in July, just before Bitcoin peaked at $126,080.
Nevertheless, Bitcoin struggled to sustain the incredible momentum that propelled it from November 2024 to October 2025. Soon after reaching its October peak, it suffered a record-breaking $19 billion liquidation that initiated a downturn for the crypto market, leading to a drop from over $121,000 to $106,000.
Although Bitcoin saw a brief recovery, it ended the year on a downward trend, falling to around $88,000 as 2025 concluded. In January 2026, institutional investors exacerbated the decline by withdrawing funds from Bitcoin ETFs, which had seen steady growth throughout 2025, resulting in over $1.5 billion in net outflows in January alone, according to Farside data.
Subsequently, increasing macroeconomic uncertainties and geopolitical tensions from the Iran War began surfacing in February, persisting to the present and heightening expectations for interest rate hikes—contrary to the rate cuts that many investors had anticipated, which would have boosted interest in riskier assets.
Even Michael Saylor, co-founder and Executive Chairman of Strategy, who previously urged investors to “sell a kidney” before selling their Bitcoin, conceded at the end of May, selling 32 BTC from his firm’s treasury for around $2.5 million.
Sell a kidney if you must, but keep the Bitcoin.
— Michael Saylor (@saylor) February 28, 2025
This decision, signaled by Saylor but viewed as detrimental to Bitcoin's market perception, preceded a significant drop that saw BTC fall below $60,000 on Friday for the first time since 2024.
While Saylor did not specify if his firm influenced the downturn, he attributed the decline to what he termed a “historical” capital rotation out of crypto and into AI, indicated by over $4 billion in ETF outflows within a month, as a major factor behind Bitcoin's drop.
As it stands, Bitcoin is down nearly 52% from its peak, leaving investors questioning its near-term outlook—and the extent of Trump's diminishing impact on the cryptocurrency market.
Under Trump, who recently stated he would “never let crypto down,” the GENIUS Act was enacted last year, offering regulatory clarity for stablecoin adoption. However, the Bitcoin reserve is progressing at a “deliberate” pace, and the Clarity Act—a comprehensive piece of crypto regulation that the industry has been advocating for—remains far from completion after passing a committee vote in May.