Crypto giant Bitcoin has suffered a massive loss of more than 20% since the beginning of 2026. The digital currency has lost nearly half of its value since a record peak of more than $124,000 in October, falling to $67,000, which is now worth less than at the beginning of President Donald Trump’s second term. Bitcoin is often touted as “digital gold” because its returns are exactly like gold, paying no dividends or profits and priced based on what investors are willing to pay. The world’s largest cryptocurrency was last trading 1.64% higher at $64,153.24 after a volatile session that saw prices fluctuate between gains and losses, having earlier touched a low of $60,008.52. The global crypto market has lost $2 trillion in value since reaching a peak of $4.379 trillion in early October, with $800 billion wiped off in the past month alone, Reuters reports. Bitcoin has fallen 28% so far this year, while Ether has fallen nearly 38% over the same period.As the asset declined, shares of companies holding Bitcoin and other digital assets also came under heavy pressure amid the ongoing turmoil in the cryptocurrency market, raising concerns about stress across the sector. Publicly listed companies, which were encouraged by US President Donald Trump’s supportive stance last year to invest in crypto, are now grappling with acute market challenges.The decline came as uncertainty over a Federal Reserve rate cut and concerns over AI company valuations weighed on risk assets, sending Bitcoin to its lowest level since November 2024.Strategy shares fall to multi-year lowShares of Strategy, the bitcoin-focused arm of MicroStrategy, have fallen from $457 in July to $111.27 on Thursday, their lowest level since August 2024. The stock was last down more than 11%, according to Reuters.In December, the strategy cut its 2025 earnings forecast, citing weak Bitcoin performance, and announced plans to build reserves to support dividend payments. The company now expects full-year earnings to fall between a profit of $6.3 billion and a loss of $5.5 billion, down from its earlier forecast of $24 billion.Other notable Bitcoin buyers have also been affected. UK-based Smarter Web Co (SWC.L) fell nearly 18%, Nakamoto Inc (NAKA.O) fell nearly 9%, and Japan’s Metaplanet (3350.T) fell more than 7%.Bitcoin has pared gains since Trump’s electionBitcoin has fallen about 28% since the beginning of the year, with its selloff recently accelerating after Trump nominated Kevin Wersh as the next Federal Reserve chairman. Analysts cited by Reuters say Warsh’s appointment could lead to a smaller Fed balance sheet, which is a negative for speculative assets like crypto.Bitcoin has erased all the gains it made since Trump’s election, when he promised to improve policies towards digital assets. The cryptocurrency last traded at $67,651.“As Bitcoin continues its decline below the psychological barrier of $70,000, it is clear that the crypto market is now in full capitulation mode,” said Nick Pukrin, investment analyst and co-founder of Coin Bureau. “If we look at previous cycles, this is no longer a short-term recovery, but a transition… and this usually takes several months, not weeks,” Reuters quoted the expert as saying.Extensive digital asset holdings were also affectedOther token holding companies have also been affected. Alt5 Sigma, which stocks the Trump family’s WLFI token, fell 8.4%. Sharplink Gaming, which holds Ether, fell 8%, while Forward Industries, which owns Solana, fell nearly 6%.Bitcoin fell to as low as $63,295.74 on Thursday, its weakest since October 2024, before rebounding slightly to $63,525, its biggest one-day drop since November 2022. According to CoinGlass data, Bitcoin positions were wiped out by almost $1 billion in 24 hours.Fed concerns and investor outflowsTrump’s Fed pick Kevin Wersh has further increased market fears. Analysts say investors worry that smaller balance sheets will eliminate liquidity support for speculative assets.“The market is afraid of him,” Julius Baer’s Manuel Villegas Franceschi told Reuters. “A small balance sheet is not going to provide any tailwind for crypto.”Deutsche Bank analysts highlighted mass withdrawals from institutional ETFs as a key driver of the decline. More than $3 billion was withdrawn from US spot Bitcoin ETFs in January, following withdrawals of $2 billion and $7 billion in December and November respectively. “In our view this continued selloff signals that interest from traditional investors is waning, and overall pessimism about crypto is increasing,” he said.The weakness of the tech sector has increased pressure on the crypto segment.The cryptocurrency’s decline was fueled by a broader decline in tech stocks, especially AI-related software companies. Bitcoin and other tokens have historically tracked risk appetite in technology markets, and the current weakness has exacerbated losses.“Concerns are being raised about crypto miners and whether we could consider forced liquidations if prices continue to fall, leading to a vicious cycle,” Jefferies strategist Mohit Kumar was quoted as saying by Reuters. The analyst further said that crypto “should never be more than a very small portion of a portfolio, but its heavy retail ownership increases overall market risk.”