Bitcoin has slipped below $70,000, erasing gains made after Donald Trump’s return to the White House, as weakening investor demand and regulatory uncertainty weigh on the world’s largest cryptocurrency.
The digital asset fell to around $65,600 on Thursday, its lowest level since November 2024, due to a combination of hawkish signals from the Federal Reserve, a slowdown in institutional buying and ongoing delays in crypto regulation.
Bitcoin had rallied following Trump’s second election victory after he promised to make the US the “crypto capital of the world,” raising expectations of looser regulation and greater political support for digital assets. But those hopes have faded as legislative progress has stalled and central banks have signaled they will keep interest rates higher for longer.
The cryptocurrency has fallen around 30 percent over the past year as enthusiasm has waned among both retail and institutional investors. Analysts say delays in US legislation to create a clear regulatory framework for digital assets have played a key role in undermining trust.
The so-called Clarity Act, a bipartisan proposal intended to determine how cryptocurrencies should be regulated, has been held up by disagreements within the industry and in Congress. In contrast, the UK has outlined plans to place crypto-asset companies under the supervision of the Financial Conduct Authority from 2027, although this framework is still some way off.
In a research note, Deutsche Bank analysts said regulatory sluggishness has slowed the integration of Bitcoin into mainstream investment portfolios. They noted that while the recent selloff looks severe, it also reflects a decline in highly speculative gains over the past two years.
“Despite the recent decline, Bitcoin remains around 370 percent higher than it was at the start of 2023,” the bank said, adding that the steady selling suggests traditional investors are losing interest and broader pessimism towards cryptocurrencies is growing.
Bitcoin was developed in 2008 by the pseudonymous developer Satoshi Nakamoto. Bitcoin has no physical form and exists solely as computer code. Once worth almost nothing, it reached parity with the US dollar in 2011 and has since become the leading indicator for the broader crypto market.
