Bitcoin slid below $75,000 on Monday, retreating to levels last seen before US President Donald Trump’s re-election, as investors pulled back from risky assets amid stalled cryptocurrency legislation in the United States.
Digital assets had surged following Trump’s victory in November 2024, driven by expectations of a friendlier regulatory environment. Just a month later, bitcoin crossed the $100,000 threshold for the first time — a milestone Trump publicly celebrated.
However, the rally has since lost momentum.
The world’s largest cryptocurrency suffered a sharp setback in April, dropping below $75,000 after sweeping US tariff announcements unsettled global markets. Although bitcoin later rebounded to reach an all-time high of $126,251.31 in October, renewed selling pressure has pushed prices lower once again.
Analysts point to regulatory uncertainty as a key driver of the latest decline. While the US Congress passed legislation in July to regulate stablecoins — cryptocurrencies backed by traditional assets — a broader regulatory framework, known as the Clarity Act, remains stalled in the Senate.
“Expectations for progress on the Clarity Act have not been met,” said James Butterfill, a researcher at digital asset manager CoinShares, describing the situation as a major headwind for crypto prices.
Bitcoin’s losses deepened after Trump announced on Friday his intention to nominate Kevin Warsh, a former Federal Reserve governor, as the next US central bank chief. Warsh’s perceived support for the Fed’s independence reassured traditional markets, prompting investors to rotate out of alternative and speculative assets.
As a result, prices of gold, silver, and cryptocurrencies fell sharply, with many investors selling to raise cash.
Meanwhile, Trump’s close relationship with the cryptocurrency sector continues to draw scrutiny. Critics have raised concerns about potential conflicts of interest, as the president has actively promoted his own crypto-related ventures since returning to office.
According to Bloomberg estimates, Trump’s family wealth increased by $1.4 billion last year from digital assets alone.
Just hours before his inauguration in January 2025, the 79-year-old billionaire launched his own cryptocurrency, $TRUMP. After an explosive debut, the token has since lost nearly 90 percent of its value from its peak.
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