Bitcoin Plunge Continues, Erasing Gains Since Trump’s Re-election
By John Power | Published on 5 February 2026
Bitcoin, the world’s most popular cryptocurrency, has experienced a steep decline, falling below $71,000 and wiping out all gains accumulated since the re-election of United States President Donald Trump in 2024. Trading around $70,900 as of 04:30 GMT on Thursday, Bitcoin has dropped more than 7 percent in a single day, contributing to an almost 20 percent loss in value since the beginning of 2026. ### Downward Trend After Previous Highs
Bitcoin’s recent slide follows a strong performance in late 2024 and early 2025. The digital currency first crossed the $100,000 mark in December 2024 and briefly surpassed this level again in February and May of 2025. However, since reaching an all-time high above $127,000 in October last year, Bitcoin’s value has steadily declined, reversing much of its previous gains.
Unlike its earlier bullish surge, driven in part by regulatory optimism, Bitcoin’s price now reflects increasing uncertainty within the cryptocurrency market and broader financial landscape.
Impact of Trump’s Re-election and Crypto Policy Expectations
Bitcoin and other cryptocurrencies experienced explosive growth after President Trump’s 2024 re-election. Markets anticipated a reduction in regulatory pressures in Washington, following years of crackdowns on digital assets. During his campaign, Trump pledged to position the United States as the global cryptocurrency capital and launched World Liberty Financial, a crypto firm co-founded with his sons.
Soon after reassuming office, Trump announced plans to establish a strategic cryptocurrency reserve, including Bitcoin and four other digital currencies. This initiative was expected to bolster the legitimacy and adoption of cryptocurrencies nationwide.
Regulatory Challenges and Political Scrutiny
Despite these ambitions, regulatory progress has hit significant roadblocks. A Trump-supported bill aimed at regulating cryptocurrency trading remains stalled in the US Senate amidst disputes between traditional banks and crypto firms. This legislative impasse adds uncertainty to the future of the industry and its regulation.
Furthermore, a recent report by The Wall Street Journal has sparked political controversy. It revealed that representatives of an Abu Dhabi official signed a $500 million deal to acquire a 49 percent stake in World Liberty Financial, drawing scrutiny from US Democratic Party lawmaker Ro Khanna, who has pledged to investigate the transaction.
Broader Market Context
Bitcoin’s losses are mirrored by declines in other markets. On Thursday, silver prices tumbled as much as 16 percent, while major stock indexes in Hong Kong and Japan dropped approximately 1.3 percent and 0.7 percent, respectively. These shifts suggest a broader risk-off sentiment among investors amid economic and geopolitical uncertainties.
Summary: Bitcoin’s value has markedly declined this year, erasing the gains made since President Donald Trump’s 2024 re-election, a period during which the cryptocurrency enjoyed regulatory optimism. Regulatory deadlocks, political investigations, and global market volatility have cast a shadow over the sector. As the digital asset drops below $71,000, the industry faces ongoing challenges to sustain its growth momentum.
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