Bitcoin Slides Below Pre-Second Trump Term Levels, Trades Under $67,000

Bitcoin extended its ongoing decline on Thursday, dropping more than 11% to trade below $67,000, falling under levels last seen before President Donald Trump began his second term in office.

Once described as “digital gold,” the world’s largest cryptocurrency has now lost nearly half its value since reaching an all-time high of $126,210.50 on October 6, according to data from Coinbase. As of Thursday afternoon (ET), bitcoin was trading around $66,300.

Following Trump’s re-election in November 2024, bitcoin prices surged for much of the following year, supported by investor optimism around a potentially crypto-friendly policy environment in Washington. Those gains have since been fully reversed.

Market analysts attribute the sell-off to a broader retreat from risk-heavy assets, including precious metals and digital currencies, along with renewed uncertainty over cryptocurrency regulation in the United States.

Earlier this week, the White House hosted discussions involving banks and crypto firms to explore possible regulatory frameworks for stablecoins. However, disagreements remain, particularly over proposals that would allow crypto firms to offer yields on customer deposits, an idea strongly opposed by traditional banks. The legislation is widely expected to stall in Congress.

The downturn has weighed heavily on crypto-linked stocks. Coinbase Global fell over 9%, while Robinhood Markets declined more than 8%. Bitcoin miner Riot Platforms dropped 10%.

Strategy, formerly known as MicroStrategy, saw shares fall 13%. The company holds more than 713,000 bitcoin, acquired at an average price above $76,000, placing its investment portfolio in unrealized losses.

Trump-linked crypto ventures also saw sharp declines. American Bitcoin, backed by Eric Trump and Donald Trump Jr., fell 6.6% and is down over 80% since early October. The World Liberty Financial token has lost nearly half its market value since September, while the $TRUMP meme coin now trades below $4, far from its pre-inauguration peak.