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Bitcoin drops to lowest since Trump's inauguration
Despite public support from Donald Trump, digital currency's price has significantly dropped
The value of Bitcoin has plummeted to a 15-month low, even with US President Donald Trump's vocal support of digital currencies.
The cryptocurrency now clocks in at $66,000 (£48,700), marking its weakest point since October 2024, with a 24% drop since the year's onset.
This downturn comes after a period of skyrocketing Bitcoin prices, which peaked at $122,200 last October.
Trump's active engagement and promotion of cryptocurrencies, combined with legislative promises to loosen regulations, initially bolstered investor confidence.
Trump, upon returning to the White House in January 2025, issued an executive directive to establish the US as the "global crypto hub."
During his initial year back, Trump introduced a personal crypto brand, channeling most profits to his ventures.
His influence extended to World Liberty Financial, a Trump family-owned investment entity for crypto assets.
Under Trump's current administration, he passed a law endorsing federal support for cryptocurrencies, dissolved a crypto-focused Department of Justice team, and saw the Securities and Exchange Commission halt crypto-related activities and probes.
In November, Senate Judiciary Committee Democrats criticised Trump’s "cryptocurrency-leaning stance," highlighting that he accumulated over $11 billion in digital assets and $800 million in crypto earnings since assuming office.
Following Thursday’s decline, Bitcoin prices have decreased by 32% over the past year, approaching early 2024 and 2021 levels.
Bitcoin stands as the most prominent cryptocurrency worldwide, representing digital money not regulated by any centralised bank.
Bitcoin is known for its volatility, but a Deutsche Bank report on Wednesday suggested the recent decline was "sparked by" Trump's choice of Kevin Warsh for the Federal Reserve chair.
Warsh is perceived to favour higher interest rates, while lower rates generally boost investments in digital currencies.
According to Deutsche, Bitcoin's downward trajectory over the past four months reflects wider negative sentiments toward cryptocurrencies.