Crypto slump - Bitcoin drops to post-Trump re-election low
Illustrative photo: bitcoin price (Getty Images)
Bitcoin has lost over 15% of its value in a week, falling to levels seen in early November 2024, according to Bloomberg.
Read also: Oil prices climb for third day as fears grow of US strike on Iran
According to journalists, the crypto market is currently experiencing its worst period since U.S. President Donald Trump returned to the White House.
On Tuesday, February 3, the world’s leading cryptocurrency fell 7%, dropping to $72,877, the lowest level since November 6, 2024. As a result, much of the optimism that prevailed after the U.S. elections has effectively evaporated.
Looking back to October 6, 2025, when Bitcoin surged to $126,000, the current decline appears catastrophic. Since its all-time high in October last year, the asset has lost about 40% of its value.
According to Bohan Zhiang, senior derivatives trader at FalconX, the sharp drop was caused by mass liquidation of positions by traders who were betting on a quick market recovery and expecting bitcoin to rise above $80,000.
"Many positions were liquidated, which further pressured prices," he noted.
Reasons for decline
The situation was also affected by geopolitical and market risks. As tensions between the U.S. and Iran rise, investors have been flocking to real gold and silver instead of cryptocurrencies.
In addition, investors were spooked by statements from Donald Trump regarding new tariffs on imports. When global economic instability looms, people tend to exit risky assets first, and cryptocurrency is typically the first to be sold.
Further pressure came from the retreat of the S&P 500 from record highs and rising oil prices due to global tensions.
Investors and traders are closely watching Trump’s next moves and global economic indicators, as even small changes in US policy can trigger sharp fluctuations in the crypto market. So far, the overall decline for the current year already stands at nearly 14%.
The Trump family earned $1.4 billion from cryptocurrency last year.
At the same time, the family’s total wealth remains roughly stable: gains from crypto partially offset losses in other business areas, including a decline in the market value of Trump Media & Technology Group, the parent company of the social network Truth Social.
Predicting Bitcoin’s future movements is nearly impossible, as cryptocurrencies lack a real economic foundation, unlike national currencies.
RBC-Ukraine also reported on government plans to legalize virtual assets.
