Since hitting a record high of $126,000 last fall, bitcoin has dropped to just above $60,000 amid waves of selling. That has erased more than $1.2 trillion in market cap in eight months and wiped out all gains across President Donald Trump’s second term.
On Friday, bitcoin its touched its lowest level since just before Trump’s reelection in 2024.
It’s a stark shift from the start of Trump’s term, when expectations of a more crypto-friendly administration helped fuel a rally to record highs. Bitcoin hit $100,000 for the first time ever one month after the presidential election.
But sentiment has since changed. The cryptocurrency is down almost 30% this year and lower by more than 6% since Trump took office. Meanwhile, the S&P 500 is up nearly 10% this year and 30% since Trump’s second term started.
The eight-month malaise since bitcoin’s last record high has pushed some investors to sell their holdings, while others are reassessing the role crypto can play in a portfolio. BlackRock’s flagship bitcoin ETF saw daily net outflows every trading session from May 15 to June 3, according to data from Farside Investors.
