Bitcoin Loses All Gains Since Trump's Reelection

Summary

• Bitcoin has dropped below its pre-election price, now trading at approximately $60,619, marking a significant decline.
• The cryptocurrency is currently more than 52% off its peak value, which raises concerns among investors.
• Despite Trump's previous assurances of supporting crypto, his influence appears to have waned in the market.

In the wake of President Donald Trump’s reelection in 2024, Bitcoin initially enjoyed a boost, referred to as the "Trump Trade," as investors anticipated favorable policies for cryptocurrencies. However, nearly two years after the election, Bitcoin's value has significantly declined, now trading below its Election Day price.

As of now, Bitcoin is valued at around $60,619, which is down roughly 12.6% from its price of about $69,355 on November 5, 2024, the election day. The day after the election, Bitcoin reached an all-time high of over $75,000, with expectations for continued growth, which were validated when it peaked at around $109,000 in January 2025.

During the first year of Trump's second term, the demand for Bitcoin exchange-traded funds (ETFs) surged, increasing from approximately $37 billion in January 2025 to over $62 billion at its zenith. This demand was further fueled by Michael Saylor's strategy of digital asset treasuries, as public companies began integrating Bitcoin into their financial strategies. Trump's own Trump Media and Technology Group reportedly acquired $2 billion in Bitcoin shortly before the cryptocurrency peaked at $126,080.

However, Bitcoin was unable to maintain its upward trajectory, suffering a significant downturn after reaching its October 2025 peak. This decline was exacerbated by a record $19 billion liquidation event that caused Bitcoin's price to plummet from over $121,000 to $106,000. Although there was a brief recovery, Bitcoin ended 2025 on a downward trend, closing at around $88,000.

In January 2026, significant withdrawals from Bitcoin ETFs by institutional investors, totaling over $1.5 billion in net outflows, further contributed to the decline. This trend coincided with rising macroeconomic uncertainties and geopolitical tensions stemming from the Iran War, which increased expectations for interest rate hikes, contrary to the anticipated cuts that could have encouraged investment in riskier assets.

Even Michael Saylor, who previously encouraged strong Bitcoin holding, sold 32 BTC from his company’s treasury for around $2.5 million at the end of May, which many interpreted as a negative signal for Bitcoin's market perception. He later attributed Bitcoin's downturn to a significant capital rotation from crypto into AI, noting over $4 billion in ETF outflows in just a month as a key factor.

Now, Bitcoin is down nearly 52% from its peak, leaving many investors questioning its future direction and the extent of Trump's influence on the cryptocurrency market. Despite Trump's assurances of support for the crypto sector, such as the enactment of the GENIUS Act for stablecoin regulation, the progress on Bitcoin-related legislation, including the Clarity Act, remains slow and incomplete.

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