Bitcoin has erased all gains accumulated during the Trump era after a sharp weekend sell-off pushed the cryptocurrency down to around $77,000, marking its lowest level since April of last year. The decline represents a dramatic reversal from late 2025, when Bitcoin surged close to $125,000, supported by a wave of crypto-friendly policies promoted by President Donald Trump.
During that period, easing regulatory pressure, the approval of landmark stablecoin legislation, and the withdrawal of Biden-era lawsuits against firms such as Coinbase and Binance helped fuel optimism across digital asset markets. Trump’s pledge to turn the United States into the “crypto capital of the world” reinforced Bitcoin’s narrative as “digital gold.” However, that thesis has weakened in recent months amid renewed market volatility.
The downturn has been exacerbated by Trump’s renewed tariff threats, heightened geopolitical tensions, and growing investor risk aversion. Bitcoin’s slide contrasts sharply with gold’s performance, which surged to record highs above $5,600 last week as capital rotated into traditional safe havens.
Additional pressure followed Trump’s decision to appoint Kevin Warsh as Federal Reserve chairman, a move that strengthened the U.S. dollar and reduced concerns about central bank independence. Market participants noted that the stronger dollar further undermined demand for speculative assets, including cryptocurrencies.
Analysts say the divergence between gold and Bitcoin has reopened debate over Bitcoin’s role as a store of value, with some investors warning that prolonged weakness could revive fears of a new “crypto winter.”
Source: Reuters, Charles Schwab, Moneyfarm
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