Bitcoin Prices Crash to Lowest Level Since Trump's Re-Election Victory
The cryptocurrency market is facing a severe crisis as Bitcoin, the original digital currency, has slumped to its lowest valuation in over a year. On Thursday, February 5, 2026, Bitcoin fell another 11 percent to reach $67,000, marking its weakest performance since United States President Donald Trump was re-elected in November 2024. According to reports from the Associated Press, this decline erases all gains made following Trump's electoral victory.
Steep Decline from Record Highs
Once heralded as "digital gold," Bitcoin has now lost nearly half of its total value since October 6, when it achieved a historic peak of $126,210.50. Data from the prominent crypto trading platform Coinbase shows the currency was trading at approximately $66,301 by 2pm US Eastern Time. This dramatic sell-off represents one of the most significant corrections in Bitcoin's volatile history.
Marion Laboure, a leading analyst at Deutsche Bank, commented on the situation, stating, "This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing." Her remarks underscore a broader shift in market sentiment away from speculative digital assets.
Investor Withdrawals and Regulatory Fears
The current Bitcoin collapse appears to be driven by a combination of factors. Investors are increasingly withdrawing from speculative assets, including gold, silver, and cryptocurrencies, amid growing concerns about future regulatory frameworks in Washington. Despite President Trump's strong backing of cryptocurrency companies since his election, uncertainty persists regarding pending legislation.
This week, the White House convened a meeting with banks and cryptocurrency firms to explore potential common ground on stablecoin regulation. The cryptocurrency industry is pushing for the ability to pay customers for holding deposits in crypto or stablecoins, a proposal fiercely opposed by the traditional banking sector. Banks argue that such measures would divert funds away from the conventional financial system. Currently, the relevant bill shows little sign of progressing through Congress.
Trump Administration's Influence on Market Dynamics
Bitcoin experienced substantial gains for much of the past year following Trump's re-election, partly due to investor optimism about a more crypto-friendly administration. However, these advances have now been completely wiped out. Experts also point to Trump's nomination of Kevin Warsh for Chair of the Federal Reserve as a contributing factor to Bitcoin's downturn.
The downturn has notably impacted Trump-associated crypto ventures. American Bitcoin, in which the president's sons Eric Trump and Donald Trump Jr. hold a significant stake, fell 6.6 percent and is now down more than 80 percent since October 7. Other cryptocurrency projects linked to the Trump family have similarly suffered substantial losses during this market turmoil.
As the crypto crisis looms larger, the future of digital currencies remains highly uncertain, with investors closely monitoring both market trends and regulatory developments in Washington.
