Bitcoin has tumbled to its lowest level in 16 months, falling as low as $60,000 (£44,000), despite strong personal and public backing from US President Donald Trump, who once promised to make America the “crypto capital of the planet.”
The sharp decline, which saw the world’s largest cryptocurrency lose over 32% of its value in the past 12 months, comes after it hit an all-time high of $122,200 in October 2025. On Thursday, Bitcoin staged a slight recovery but remained under heavy pressure as investors grappled with shifting market realities.
“Those who bet too big, borrowed too much or assumed prices only go up are now finding out the hard way what real market volatility and risk management look like,” Joshua Chu, co-chair of the Hong Kong Web3 Association, told Reuters.
The drop has been attributed to several factors, including the nomination of Kevin Warsh as the new chair of the Federal Reserve. Analysts at Deutsche Bank noted that Warsh is seen as more “hawkish,” likely to keep interest rates higher for longer a stance that typically weighs on risk assets like cryptocurrencies.
Bitcoin has been trending downward for the last four months, with growing negative sentiment across the broader crypto market. Deutsche Bank described this as a sign that traditional investors are losing interest and pessimism about the sector is increasing. The bank does not expect Bitcoin to disappear but believes it is moving from being a “purely speculative asset” to one that must find its specific role in the financial system.
William Barhydt, CEO of Abra Capital Management, acknowledged the current pain but remained optimistic about a rebound. “I wouldn’t say that it has to rebound, but I can’t see how it doesn’t,” he said, noting that Bitcoin has survived significant swings before. “The only way it doesn’t is if we end up in some kind of war.”
Other major cryptocurrencies have also suffered. Ethereum and Solana have each dropped roughly 37% so far in 2026. According to CoinGecko, the entire crypto market has lost over $1 trillion in value in the last month alone and more than $2 trillion since its peak in October 2025.
Stifel, a US-based investment firm, warned that Bitcoin could fall as low as $38,000, pointing to a new trend where cryptocurrency prices are increasingly tracking the US Dollar.
Trump’s pro-crypto stance had initially fuelled optimism. Upon returning to the White House in January 2025, he signed an executive order aimed at making the US the global leader in cryptocurrency. He also launched a personal crypto brand and maintained involvement with World Liberty Financial, an investment vehicle owned by the Trump family. During his administration, he signed legislation supporting federal backing of crypto, dissolved a Department of Justice team focused on crypto enforcement, and saw the Securities and Exchange Commission drop several related investigations.
Despite these moves, Bitcoin’s recent performance suggests that even strong political support cannot fully shield the market from broader economic forces, including interest rate expectations, inflation concerns, and geopolitical risks.
As the crypto market matures, investors appear to be recalibrating their expectations. The current downturn serves as a stark reminder that, despite its growing mainstream acceptance, cryptocurrency remains highly sensitive to macroeconomic shifts and global uncertainty.
