Bitcoin has experienced a significant decline, falling below $74,000 on Tuesday. This drop of over 6% represents its lowest point since November 2024, a time when Donald Trump won his second presidential term. Following his victory, Bitcoin surged from $74,000 to an unprecedented high of nearly $126,000 by October 2025, fueled by hopes that his administration would adopt pro-crypto policies.
However, despite a series of favorable moves from the Trump administration, including the appointment of a new SEC chair and the passage of the GENIUS Act, the anticipated positive effects on digital assets have not materialized. Investors remain cautious, seeking more substantial actions from the administration to incentivize a resurgence in the market.
Bitcoin’s current position reflects a troubling trend, as it has now recorded four monthly losses in a row. The recent slide not only marks a downturn for 2026 but also negates gains from January when prices briefly reached $95,000. Other major cryptocurrencies faced similar fates; Ethereum dropped nearly 10% to $2,100, Solana fell 10% to $97, and XRP slid 6% to $1.52.
The ramifications of this market downturn have led to significant liquidations, with over $280 million wiped out in the last hour alone, and total 24-hour liquidations surpassing $620 million, according to CoinGlass data.
Traditional markets mirrored this bearish sentiment, with the S&P 500 declining by 1.4% and the Nasdaq losing more than 2%. This broad risk-off attitude illustrates a pervasive unease across diverse asset classes, showing that investors are seeking safety during turbulent times.
The current scenario serves as a stark reminder of how swiftly market dynamics can change and underscores the importance of staying informed and agile in the cryptocurrency landscape.