Bitcoin slid below the $75,000 mark on Monday, retreating to levels last seen before the re-election of US President Donald Trump, as investors pulled back from riskier assets amid stalled cryptocurrency legislation in Washington.
Digital currencies had rallied strongly after Trump’s victory in November 2024, driven by expectations of a more favourable policy environment. One month later, bitcoin crossed $100,000 for the first time — a milestone the president publicly celebrated.
The rally faltered in April, when bitcoin dropped below $75,000 following the announcement of sweeping US tariffs that unsettled global markets. Prices later rebounded, hitting a record high of $126,251.31 in October, before reversing again.
The latest downturn has been largely attributed to regulatory uncertainty. While Congress passed a law in July to regulate stablecoins — cryptocurrencies backed by traditional assets — broader legislation known as the Clarity Act has stalled in the Senate.
“Expectations for progress on the Clarity Act have not been met,” said James Butterfill, a researcher at digital asset manager CoinShares, describing the delay as a persistent headwind for crypto markets.
Bitcoin’s losses deepened after Trump announced on Friday that he would nominate former Federal Reserve governor Kevin Warsh as the next US central bank chief. Warsh is widely seen as a defender of the Fed’s independence, a signal that reassured traditional markets.
Following the announcement, investors sold off safe-haven assets such as gold and silver, while also trimming exposure to cryptocurrencies and other volatile assets to raise cash.
Trump’s close ties to the crypto industry have continued to draw scrutiny. Since returning to office, he has promoted several cryptocurrency-related ventures, prompting accusations of conflicts of interest.
Bloomberg estimates show that the Trump family’s wealth grew by about $1.4 billion last year from digital assets alone. Hours before his inauguration in January 2025, the president launched his own cryptocurrency, $TRUMP, which has since lost about 90 per cent of its value from its peak after an initial surge.
