Bitcoin Plummets as Post-Trump Rally Loses Steam
Bitcoin’s recent downturn has sent ripples through the cryptocurrency market, with the asset’s price plunging below $65,000 as of February 6, 2026. This marks its lowest level since 2024, effectively erasing gains made during the post-2024 Trump victory rally. The sharp decline has seen Bitcoin lose over 25% of its value year-to-date, while Ethereum and other major cryptocurrencies have also suffered significant losses.
Market Impact and Investor Sentiment
The decline in Bitcoin’s value has been accompanied by a broader sell-off in tech stocks and leveraged crypto positions, with Barron’s reporting a brief dip to $60,000 before a minor recovery to around $65,750. Despite this slight rebound, Bitcoin remains 48% below its peak of $126,000 in October 2025. Ethereum has faced an even steeper decline, down 37% and trading near $1,849.
The sell-off has not been limited to Bitcoin and major cryptocurrencies. Trump-linked crypto ventures, such as American Bitcoin and the meme coin $TRUMP, have seen drastic declines in value. American Bitcoin has dropped over 80% since October 2025, reflecting broader market disillusionment with Trump-associated crypto projects.
Regulatory and Market Pressures
Contributing to the market downturn is increased regulatory scrutiny. U.S. lawmakers are investigating transactions tied to Trump-family crypto interests, particularly a $500 million investment into World Liberty Financial by an Emirati royal. This regulatory pressure, coupled with stalled crypto policy momentum, has dampened the optimism that initially buoyed the market during Trump’s rise.
Furthermore, spot Bitcoin ETFs have experienced significant outflows, with approximately $5.7 billion withdrawn from November to January, indicating waning institutional demand. This exodus from ETFs highlights a shift in investor sentiment, as traditional markets regain favor amidst the cryptocurrency market’s volatility.
Broader Economic Context
The global cryptocurrency market has contracted by an estimated $2 trillion since early October 2025, a stark reminder of the speculative nature of the sector. Analysts caution that the market may not have hit bottom yet, as uncertainty continues to cloud the future of digital assets.
Additionally, the sell-off has been exacerbated by a global downturn in tech stocks, which has particularly affected large holders like MicroStrategy (now Strategy), resulting in unrealized losses. This tech-led sell-off has put further pressure on speculative assets, including cryptocurrencies.
Future Outlook
As of February 6, 2026, Bitcoin and the broader crypto market remain under significant pressure. Whether this marks the end of the downward cycle or the beginning of a sustained rebound remains uncertain, with analysts urging caution amid heightened volatility. The phrase ‘trump sucks bitcoin down’ aptly captures the abrupt shift in Bitcoin’s trajectory from a Trump-infused rally to a steep correction.
Investors and market observers will be closely watching for regulatory developments and shifts in institutional interest as potential catalysts for future market movements. Until then, the cryptocurrency market is likely to remain volatile, with significant uncertainty surrounding its near-term prospects.
Comments are closed.