London (AFP) – Bitcoin, the world’s biggest cryptocurrency, extended its price slump Thursday to trade under $70,000 for the first time since Donald Trump’s presidential election victory in November 2024. The digital currency dropped as low as $69,821.18 before climbing back above $70,000. Bitcoin has fallen sharply in recent weeks as investors pull back from risky assets. It had reached a record high above $126,000 in October.
“Bitcoin continues to suffer…caught up in the broader risk-off mood and geopolitical turmoil that has pushed investors away from riskier assets towards safe havens,” noted Victoria Scholar, head of investment at Interactive Investor. The volatile cryptocurrency soared after Trump was elected as he was widely viewed as a strong supporter of the sector. He publicly celebrated bitcoin crossing $100,000 for the first time in December 2024. However, it suffered a sharp setback in April last year, falling below $75,000 after the president’s announcement of sweeping US tariffs rattled global markets. It went on to reach a record-high of $126,251.31 six months later.
The latest downturn is driven largely by regulatory uncertainty. While the US Congress passed a law in July to regulate stablecoins — a form of cryptocurrency backed by traditional assets — a broader crypto bill, the Clarity Act, has stalled in the Senate. Bitcoin’s decline has also been exacerbated by Trump recently nominating former Federal Reserve governor Kevin Warsh to head the US central bank. Warsh, seen by observers as a defender of the Fed’s independence, reassured traditional markets, prompting investors to sell safe-haven assets such as gold and silver, whose prices plunged.
Many investors rushed to sell cryptocurrencies and other risky assets to help raise cash. Trump’s close ties to the crypto sector have sparked accusations of conflicts of interest, as he has promoted his own cryptocurrency-related ventures since returning to office. According to recent Bloomberg estimates, his family’s fortune grew by $1.4 billion last year from digital assets alone. Just hours before his inauguration in January 2025, the 79-year-old billionaire launched his own cryptocurrency, $TRUMP, which slumped after a blockbuster debut.
© 2024 AFP
