Bitcoin tumbled through the critical $70,000 psychological barrier on Thursday, marking its weakest performance since November 2024 and completely erasing all gains made following Donald Trump's presidential election victory.
The world's largest cryptocurrency fell as much as 3.8% to a low of $69,858, according to multiple international exchanges, as a broader selloff in risk assets showed no signs of abating. The decline has wiped out nearly 8% for the week and brought Bitcoin's year-to-date losses to approximately 20%, representing a dramatic reversal from the post-election euphoria that had driven the digital asset to record highs.
Fed Nomination Triggers Crypto Exodus
The latest plunge coincides with mounting concerns over Kevin Warsh's nomination as Federal Reserve chairman, which has sparked fears of tighter monetary policy ahead. The dollar's strength following the nomination announcement has created additional headwinds for cryptocurrency markets, as investors traditionally view Bitcoin and other digital assets as alternatives to the greenback.
"Bitcoin has already fallen nearly 8 per cent for the week, taking its losses for the year so far to nearly 20 per cent"
— South China Morning Post Analysis
Russian financial outlet Meduza reported that Bitcoin "briefly dropped below 70,000 dollars" to levels not seen since November 2024, when Trump first signaled his intention to support cryptocurrency during his campaign trail. Bloomberg analysis cited by Russian media suggests Bitcoin has now lost more than 44% compared to its peak above $126,000 in October 2025.
Global Market Rout Intensifies
The cryptocurrency crash is part of a broader "crisis of faith" affecting risk assets worldwide, according to Shiliang Tan, managing partner at Monarq Asset Management. The selloff follows a massive scale-back in technology stocks, with investors increasingly concerned about the sustainability of the AI boom that had driven much of 2025's market gains.
International coverage has been extensive, with Danish outlet Ekstrabladet noting this marks the "first time in 15 months" that Bitcoin has fallen below $70,000. Hungarian financial media reported an even steeper decline, with Bitcoin falling below $67,000 at one point, representing a 47% loss from its peak value since October.
Trump Effect Completely Reversed
The dramatic reversal is particularly striking given Bitcoin's initial surge following Trump's electoral victory in November 2024. The president had campaigned on a pro-cryptocurrency platform, promising to make America the "crypto capital of the world" and signaling support for digital asset innovation.
However, regulatory uncertainty has persisted despite the administration's supportive rhetoric. Congressional legislation supporting cryptocurrency has stalled, creating doubt among institutional investors who had initially embraced Trump's crypto-friendly promises. This regulatory limbo has contributed to the current market retreat from risk assets.
"The market is experiencing a 'crisis of faith'"
— Shiliang Tan, Monarq Asset Management
Technical Analysis Points to Further Weakness
From a technical perspective, Bitcoin's breach of the $70,000 level represents a significant psychological and technical breakdown. Greek analysts have warned of a potential "endless decline" if this critical support level is definitively broken, as it could trigger additional algorithmic selling and force leveraged positions to liquidate.
The decline has been accompanied by increased trading volumes, suggesting genuine selling pressure rather than merely thin market conditions. This volume pattern often indicates capitulation among weaker hands and could potentially set the stage for a more sustained correction.
Institutional Response Mixed
Despite the dramatic selloff, some prominent figures view the current volatility as a buying opportunity. Robert Kiyosaki, author of "Rich Dad Poor Dad," has consistently advocated for Bitcoin accumulation during periods of volatility, viewing such corrections as natural in the cryptocurrency's long-term adoption cycle.
However, institutional investors appear to be taking a more cautious approach. Many are awaiting clearer regulatory frameworks before committing significant additional capital to the cryptocurrency space. The stalling of pro-crypto legislation in Congress has created uncertainty about the actual policy implementation despite Trump's campaign promises.
Global Coordinated Selling
The cryptocurrency selloff has coincided with weakness in traditionally uncorrelated assets, including precious metals and technology stocks. This coordinated decline across asset classes suggests broader liquidity pressures in the global financial system, potentially related to shifts in monetary policy expectations.
Gold and silver have also experienced significant volatility in recent sessions, indicating that investors are fleeing risk assets broadly rather than rotating between alternative stores of value. This pattern challenges Bitcoin's narrative as a digital hedge against traditional market volatility.
Market Outlook Uncertain
The near-term outlook for Bitcoin remains highly uncertain, with much depending on Federal Reserve policy direction and the resolution of regulatory uncertainty. If Kevin Warsh's nomination proceeds and results in tighter monetary policy, cryptocurrencies could face continued headwinds as investors seek higher yields in traditional fixed-income assets.
Recovery prospects will likely depend on several factors: resolution of Congressional cryptocurrency legislation, clarification of Fed policy direction, and broader market stability. Without these catalysts, Bitcoin may continue to struggle against the strong dollar and shifting investor risk appetite.
The cryptocurrency's correlation with traditional risk assets has increased significantly, challenging previous assumptions about its role as a portfolio diversifier. This evolving relationship will be crucial to monitor as markets navigate the current period of heightened volatility and policy uncertainty.