Affected by the intensification of the liquidation of leveraged positions and the overall market shock, the price of Bitcoin plummeted below $70,000. The sell-off gave back all the gains caused by the cryptocurrency speculation boom since Trump was elected president. Bitcoin fell as much as 10% on Thursday, falling to $65,344, a new low since October 2024.
Since hitting an all-time high four months ago, Bitcoin has almost halved, and the decline has also spread to other crypto tokens, related ETFs, and related companies such as Strategy, which holds large amounts of cryptocurrency.
The decline marks an abrupt end to Bitcoin’s meteoric rise that lasted much of last year as the return of previously crypto-friendly Trump to the White House fueled a rush of investors into the crypto tokens and the variety of financial products that have sprung up around them on Wall Street.
Since this month, the escalation of geopolitical tensions has impacted global financial markets, curbed risky investment activities, and cracks have begun to appear in the cryptocurrency market. This triggered a cliff-like decline in Bitcoin since mid-January, while funds liquidated assets in response to redemptions and unwinding leveraged positions, further triggering a self-reinforcing selling cycle.