Bitcoin slipped below the $70,000 mark on Thursday, erasing gains made following Donald Trump’s return to the White House. The cryptocurrency fell to around $65,600, its lowest level since November 2024, as investor demand weakened and uncertainty over regulation weighed on the market.
The digital asset surged in the wake of Trump’s second election victory, when he pledged to make the United States the “crypto capital of the world.” Expectations of lighter regulation and stronger political support helped drive prices higher. That momentum has since faded, as progress on legislation stalled and central banks signalled they would maintain higher interest rates for longer.
Over the past year, bitcoin has lost roughly 30 per cent of its value, reflecting cooling enthusiasm among both retail and institutional investors. Analysts say delays to US legislation designed to clarify the regulatory landscape for digital assets have been a key factor in undermining confidence.
The bipartisan Clarity Act, which aims to define rules for cryptocurrencies, has been held up by disagreements within the sector and in Congress. In comparison, the UK plans to bring cryptoasset firms under the Financial Conduct Authority by 2027, though that framework is still in development.
Deutsche Bank analysts noted that regulatory uncertainty has slowed the integration of bitcoin into mainstream investment portfolios. In a research note, they said the recent sell-off partly reflects a retreat from highly speculative gains over the past two years. “Despite the recent drop, bitcoin remains around 370 per cent higher than in early 2023,” the bank added. The analysts highlighted that the pattern of selling indicates traditional investors are losing interest, contributing to broader pessimism in the crypto market.
Bitcoin, created in 2008 by the pseudonymous developer Satoshi Nakamoto, exists purely as computer code without a physical form. From its early days of near-zero value, it reached parity with the US dollar in 2011 and has since become the benchmark for the wider cryptocurrency market. Its price movements often influence other digital assets, including ethereum and solana, and act as a bellwether for investor sentiment in the sector.
As regulatory frameworks remain unsettled and central banks maintain tighter monetary policies, bitcoin’s recent decline highlights the challenges facing digital currencies. While the cryptocurrency has enjoyed substantial gains over the past decade, its path remains highly sensitive to political, regulatory, and macroeconomic factors, making it a volatile asset for investors.
