Bitcoin slipped below $70,000 on Thursday for the first time since Donald Trump’s election victory in November 2024, as the world’s largest cryptocurrency remained under pressure from a broader decline in risk assets, AFP reported.The cryptocurrency fell to $69,821.18 before rising back above the $70,000 level. The decline comes after Bitcoin touched a record high above $126,000 in October.“Bitcoin continues to suffer losses…broad risk-off sentiment and geopolitical turmoil have pushed investors away from riskier assets and toward safe havens,” said Victoria Schaller, head of investments at Interactive Investor.Bitcoin surged after Trump’s election, as he was widely seen as a supporter of the crypto sector. He also publicly celebrated Bitcoin crossing $100,000 for the first time in December 2024.However, the cryptocurrency has seen sharp fluctuations. In April last year, Bitcoin fell below $75,000 after Trump announced sweeping US tariffs, which shook global markets. It later gained momentum and six months later it reached a record high of $126,251.31.The latest weakness has also been linked to regulatory uncertainty. While the US Congress passed a law to regulate stablecoins in July, a comprehensive cryptocurrency bill, the Clarity Act, is stalled in the Senate.Bitcoin was also impacted by Trump’s nomination of former Federal Reserve Governor Kevin Worsh to head the US central bank. Warsh is seen by observers as a defender of the Fed’s independence, which reassured traditional markets and prompted investors to sell safe-haven assets like gold and silver whose prices had fallen.Investors have also sold cryptocurrencies and other risk assets to raise cash, adding to the pressure on digital tokens.Trump’s close ties to the crypto sector have also drawn criticism, as he has promoted his own cryptocurrency-related ventures since returning to office. Bloomberg estimates that digital assets increased his family’s wealth by $1.4 billion last year.Hours before his inauguration in January 2025, Trump launched his own cryptocurrency, $TRUMP, which later fell after an initial surge after its launch.
