Bitcoin continued its decline this week, with its price now below levels seen on the day of the 2024 US election. According to the data cited in the article, BTC is currently trading at approximately $60,619, about 12.6% lower than the closing price of approximately $69,355 on November 5, 2024, and briefly fell below $60,000 for the first time since 2024.
From the "Trump trade" to giving back gains
Following the 2024 election, the market attributed Bitcoin's surge to the "Trump trade." Investors bet that the new administration would adopt more crypto-friendly policies, driving BTC's rapid rise after the election. The article mentions that Bitcoin reached approximately $109,000 in January 2025, and subsequently hit a high of approximately $126,080 in October 2025.
The driving forces behind this surge are mainly twofold: first, the continued influx of funds into Bitcoin ETFs; and second, the demand from listed companies' increased holdings of Bitcoin, forming a "digital asset treasury." The report cites data showing that Bitcoin ETF assets under management grew from approximately $37 billion in January 2025 to a peak of over $62 billion.
Liquidation and redemption dragged down the market.
However, this rally failed to hold. The article states that shortly after reaching its October 2025 peak, the crypto market experienced a massive liquidation of approximately $19 billion, with Bitcoin falling from above $121,000 to around $106,000. While there was a subsequent rebound, the overall trend continued to weaken, falling back to approximately $88,000 by the end of 2025.
Entering 2026, institutional fund withdrawals further increased the pressure. The report cited Farside data, stating that in January 2026 alone, Bitcoin ETFs saw net outflows exceeding $1.5 billion. With weakening liquidity, market appetite for risk assets also cooled.
Macroeconomic and geopolitical factors continue to exert pressure.
The article also links the recent weakness to the macroeconomic environment. Since February 2026, geopolitical risks surrounding the war with Iran have continued to escalate, coupled with changes in interest rate expectations, leading to a decline in market interest in high-risk assets and putting downward pressure on Bitcoin.
Furthermore, the report mentioned that Strategy co-founder and executive chairman Michael Saylor sold 32 bitcoins from the company's vault at the end of May, cashing out approximately $2.5 million. While the amount was small, this move was still seen as damaging market confidence in Bitcoin. The article also stated that Saylor attributed the recent decline in part to funds shifting from crypto assets to AI, with related ETFs experiencing outflows of over $4 billion in less than a month.
On the policy front, Trump recently reiterated that he would not disappoint the crypto industry. The US has already passed the GENIUS Act, providing a clearer regulatory framework for stablecoin applications. However, the article mentions that the progress of Bitcoin reserves is still slow, and while the broader crypto regulatory bill, the Clarity Act, passed a committee vote in May, it is still some distance from being formally implemented.
