Bitcoin plunges to its lowest level since Trump's victory, with losses of $500 billion
Cryptocurrency markets witnessed a sharp sell-off that led to Bitcoin's price falling to its lowest level since the announcement of US President Donald Trump's re-election in early November 2024. This sudden drop reflects a state of uncertainty in the markets, threatening the gains made by the world's largest cryptocurrency, which had previously rebounded thanks to optimistic expectations of a new US administration adopting more supportive and flexible policies towards digital assets.
Amid these sharp fluctuations, the cryptocurrency market suffered heavy losses, shedding approximately $500 billion of its total market capitalization in just the last five days. Bitcoin led this decline, trading below $73,000 yesterday before attempting to recover some of its losses later, but the overall trend remained decidedly bearish.
The paradox of exchange-traded funds (ETFs)
Despite the negative market price performance, financial data revealed a striking paradox: Bitcoin spot exchange-traded funds (ETFs) recorded positive investment inflows of approximately $560 million last Monday. This figure is the highest since January 14th, suggesting that major institutional investors may see this decline as an opportunity to buy at lower prices, at a time when smaller investors are gripped by anxiety.
Details of the drop and current prices
According to Tuesday's trading data, Bitcoin fell to fluctuate around $76,429 (after briefly dipping below $73,000), marking a decline of approximately 2.7% in 24 hours. Altcoins were not immune to this downward trend, with Ethereum, the second-largest cryptocurrency by market capitalization, dropping 1.75% to $2,276.11.
The political and economic context of the event
This decline is particularly significant given its close connection to the US political landscape. Since Donald Trump's victory in November 2014, optimism has prevailed in the cryptocurrency sector, fueled by his campaign promises, which were interpreted as a green light to ease previously stringent regulations. Analysts suggest that the current pullback could be a natural "price correction" to capitalize on profits after record highs, or a reaction to macroeconomic factors that have dampened investors' risk appetite.
The color red dominated most cryptocurrencies in the market, leading to a decline in the total market value of digital assets by 2.46% to settle at about $2.58 trillion, with Bitcoin alone accounting for about $1.5 trillion of that, confirming its continued dominance despite price fluctuations.
