Bitcoin fell to its lowest level in 16 months this week, reaching $60,000 (£44,000) before recovering slightly, despite US President Donald Trump’s vocal support for cryptocurrency. The digital token’s decline comes after months of surging prices, which saw it hit an all-time high of $122,200 in October 2025.
Joshua Chu, co-chair of the Hong Kong Web3 Association, told Reuters that investors who had “bet too big, borrowed too much or assumed prices only go up are now finding out the hard way what real market volatility and risk management look like.”
Bitcoin, the world’s largest cryptocurrency, operates independently of centralised financial institutions. Prices have fallen 32% over the past 12 months, moving toward levels last seen in early 2024 and 2021. Ethereum and Solana, two other major cryptocurrencies, have also fallen roughly 37% in 2026. CoinGecko reports the global crypto market has lost over $1 trillion in value in the past month and $2 trillion since October.
In the United States, Trump’s first actions after returning to the White House in January 2025 were strongly pro-crypto. He issued an executive order aimed at making the US the “crypto capital of the planet,” launched a personal cryptocurrency brand with profits flowing to his companies, and maintained involvement with World Liberty Financial, the Trump family-owned crypto investment vehicle. Federal support for digital currencies increased under his administration, while crypto-focused enforcement by the Department of Justice and the SEC declined.
Trump’s personal crypto holdings are reported to be worth more than $11 billion, with $800 million in personal income from crypto transactions since taking office. Critics in the Senate Judiciary Committee have warned that his “pro-crypto agenda” raises concerns about conflicts of interest.
Analysts say recent market declines are influenced by macroeconomic factors. Deutsche Bank noted that Bitcoin’s fall followed Trump’s nomination of Kevin Warsh as Federal Reserve chair, whose “hawkish” stance could maintain higher interest rates, typically dampening speculative investments such as cryptocurrency. The bank described the decline as a sign that traditional investors are losing interest and that crypto sentiment is increasingly negative.
While the market remains volatile, some experts see potential for recovery. William Barhydt, CEO of Abra Capital Management, said Bitcoin is maturing as an asset and predicted a likely rebound, barring major geopolitical shocks. Stifel, a US investment firm, warned that Bitcoin could drop further, possibly reaching $38,000, as cryptocurrencies begin to track the US dollar more closely.
The correction marks a turning point for cryptocurrency, shifting it from a purely speculative asset to one that must establish a clearer role within the global financial system. Investors are now reassessing risk and seeking more sustainable opportunities in the digital currency market.
