Bitcoin Plunge Continues, Erasing Gains Since Trump’s Election
By John Power – Published 5 February 2026
Bitcoin, the world’s most popular cryptocurrency, has suffered a sharp decline, falling below $71,000 and wiping out all the gains it experienced following United States President Donald Trump’s re-election in 2024. This steep downward trend adds to a week of losses, marking a significant setback for cryptocurrency investors.
As of 04:30 GMT on Thursday, Bitcoin was trading at approximately $70,900, reflecting a drop of more than 7 percent on the day. The recent slide has taken the digital asset’s value down by nearly 20 percent since the beginning of 2026. This marks a continuation of a downward trajectory that started in mid-January and follows a period of remarkable price growth seen in previous years.
Bitcoin first crossed the $100,000 threshold in December 2024 and exceeded this milestone again in February and May 2025. However, since peaking at an all-time high of more than $127,000 in October 2025, the cryptocurrency has experienced a consistent decline.
The extraordinary gains of Bitcoin and other digital currencies were largely fueled by optimism following President Trump’s re-election. His administration had raised expectations of a regulatory approach favorable to cryptocurrencies after years of stringent crackdowns. During his campaign, Trump pledged to transform the United States into the world’s cryptocurrency capital. Notably, he launched his own crypto company, World Liberty Financial, alongside his sons before securing his second term.
Soon after taking office, Trump announced the creation of a strategic crypto reserve incorporating Bitcoin and four other cryptocurrencies as part of the administration’s broader financial strategy. However, momentum has slowed as a Trump-backed bill intended to regulate cryptocurrency trading has stalled in the US Senate. The impasse, stemming from disagreements between banking institutions and cryptocurrency firms, has cast uncertainty over the future direction of the digital asset industry in the United States.
Adding to the scrutiny of Trump’s crypto ambitions, US Democratic Party lawmaker Ro Khanna revealed plans to investigate World Liberty Financial. This follows a report by The Wall Street Journal indicating that representatives of an Abu Dhabi official signed a $500 million deal to acquire a 49 percent stake in Trump’s emerging cryptocurrency venture.
The downturn in Bitcoin’s value coincided with broader market declines on Thursday. Commodities markets saw plunges, notably silver, which fell by as much as 16 percent. Major stock indices also suffered losses, with benchmark stock indexes in Hong Kong and Japan dipping approximately 1.3 percent and 0.7 percent, respectively.
The ongoing volatility of Bitcoin highlights both the promise and the risks associated with cryptocurrencies as they continue to face regulatory challenges and market fluctuations. Investors and policymakers alike remain closely attentive to developments in the rapidly evolving digital asset landscape.
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