Bitcoin slid below the $71,000 mark on Thursday, extending a sharp sell-off that has erased all gains made since U.S. President Donald Trump’s re-election in 2024 and deepening a broader risk-off move across global markets.
The world’s largest cryptocurrency fell more than 7% on the day, trading around $70,900 as of 04:30 GMT. The drop brings Bitcoin’s losses to nearly 20% since the start of the year, capping a downturn that began in mid-January after months of record-setting gains.
Bitcoin had surged late last year on optimism surrounding a potential shift in U.S. crypto policy, climbing to $100,000 for the first time in December 2024 and revisiting that level in February and May 2025. In October, it hit an all-time high above $127,000. Since then, prices have steadily retreated as policy momentum stalled.
The rally had been fueled by expectations that a second Trump administration would adopt a lighter regulatory stance toward digital assets following years of industry crackdowns.
During his campaign, Trump pledged to make the United States a global hub for cryptocurrency and later launched a crypto venture, World Liberty Financial, with his sons. After taking office, he announced plans for a strategic U.S. crypto reserve that would include Bitcoin and four other digital assets.
However, investor confidence has waned as a Trump-backed cryptocurrency regulation bill remains stalled in the U.S. Senate amid disagreements between traditional banks and crypto firms.
Adding to uncertainty, Democratic Representative Ro Khanna said on Wednesday that he would investigate World Liberty Financial following reports that representatives linked to an Abu Dhabi official signed a $500 million deal to acquire a 49% stake in the venture.
The sell-off in digital assets came alongside broader market weakness. Silver prices plunged as much as 16%, while benchmark stock indexes in Hong Kong and Japan fell about 1.3% and 0.7%, respectively, reflecting rising risk aversion across global markets.
