Price drops to $65,000, erasing gains from President Donald Trump’s election as investors shift to safe-haven assets
The world’s largest virtual currency, Bitcoin, fell below $70,000 per unit for the first time after the election of U.S. President Donald Trump in November 2024. Although Bitcoin, which once plummeted to the $65,000 range, has since reduced its decline, some forecasts suggest it could drop to $60,000.
According to the virtual currency exchange CoinMarketCap, Bitcoin was traded at around $66,000 per unit on the 6th (local time), a drop of more than 10% compared to 24 hours ago. On that day, Bitcoin’s price temporarily fell to $65,266.49. This marks a sharp decline of approximately 47% from its peak in October of last year, erasing all gains made since President Trump’s election. Platforms predicting future Bitcoin prices indicate a nearly 90% probability that it will fall below $60,000. Ethereum, the second-largest in the industry, also remained at around $1,937 per unit, a roughly 10% drop from 24 hours ago.
After winning the election, Trump stated, “I will make the U.S. the ‘global capital of virtual currency.'” In January of last year, he signed an executive order titled “Strengthening Leadership in Digital Financial Technology,” promoting the growth of digital assets and blockchain technology. Regulatory agencies, such as the Securities and Exchange Commission (SEC), eased the industry’s burden by deprioritizing virtual currencies in annual inspection priorities. As a result, Bitcoin surged to $126,198.07 per unit on October 7 of last year amid an investment frenzy.
However, as the Trump effect weakened and investors turned to traditional safe-haven assets like gold and silver, demand for virtual currencies rapidly cooled. Since October of last year, gold prices have risen by over 24%, while Bitcoin has fallen by more than 40%. This week’s decline accelerated amid a stock market sell-off triggered by concerns over the impact of artificial intelligence (AI) on technology companies.
In the investment industry, there are criticisms that the fundamental reason is investors’ failure to perceive virtual currencies as inherently “digital gold.” CNN noted, “The truly strange aspect is that Bitcoin’s price fell during the past four months when all favorable conditions were present.” If virtual currencies were indeed the safe-haven “digital gold” as bullish advocates claim, their prices should have risen during this period. When geopolitical tensions escalated — such as the U.S. attacking Venezuela and conflicts with Europe and Canada over Greenland issues — safe-haven assets like gold and silver gained attention, but virtual currency values uniquely declined. CNN stated, “The core issue is ultimately the skepticism that Bitcoin is not ‘digital gold.'”
However, some argue that given Bitcoin’s historical volatility, it may also recover value over time. Bitcoin has previously plummeted in 2014, 2018, 2021, and 2022 due to regulatory pressures and concerns over the ICO (Initial Coin Offering) frenzy.
