Bitcoin slid below $70,000 on Thursday for the first time since November 2024, erasing the gains accumulated after Donald Trump secured a second term as US president.

The largest cryptocurrency fell 7% to just under $68,000 as digital assets were caught up in a broader sell-off across technology stocks. Bitcoin has now lost more than 20% of its value in dollar terms since the start of the year. “Sentiment has deteriorated sharply,” said Jasper De Maere, a strategist at trading firm Wintermute. “The crypto market still feels tired as we see little appetite from anyone to step in convincingly at these levels.”

Ether, the second-largest cryptocurrency, dropped 8% to $1,960, pushing its year-to-date decline to 34%.

Post-election optimism fades as investors rotate to gold

Bitcoin had surged following Trump’s election win, supported by his pledge to make the US “the crypto capital of the world” and ease regulatory pressure on the sector.

Since entering office last year, the Trump administration has helped advance more industry-friendly legislation, while regulators rolled back several crypto enforcement actions. This environment helped drive bitcoin to a record high above $125,000 last summer.

That momentum has since cooled. Investor enthusiasm tied to Trump’s crypto stance has faded, while capital has increasingly flowed into precious metals as longer-term stores of value, fueling record rallies in both gold and silver. Progress on major US crypto legislation has also stalled this year, adding to uncertainty.

The latest downturn accelerated this week amid a broader equity sell-off, driven by concerns over how artificial intelligence may impact technology company earnings.

Corporate exposure and market stress intensify

Shares of Strategy, the bitcoin-heavy company led by Michael Saylor, fell 12% on Thursday and are down more than 25% so far this year. Bitcoin’s decline has left the firm with billions of dollars in unrealized losses, after Saylor accumulated 713,502 bitcoin at an average price of $76,052 using a mix of equity and debt financing. During the sell-off, Saylor posted “HODL” on X, a widely used crypto term meaning “hold.” Strategy is scheduled to report earnings after markets close on Thursday.

Elsewhere in the sector, crypto exchange Gemini, founded by Tyler and Cameron Winklevoss, announced plans to lay off 200 employees and scale back certain operations to reduce costs. The company’s shares have dropped 80% since its public listing in September last year.

On prediction market platform Kalshi, traders have increasingly positioned for further downside. Bets placed last month suggest roughly an 85% probability that bitcoin will fall below $60,000 at some point this year.

Sources:

https://www.marketwatch.com/livecoverage/stock-market-today-dow-sp500-nasdaq-mixed-amid-ai-software-angst-silver-dives-amazon-earnings/card/bitcoin-falls-below-70-000-for-first-time-since-2024-LRn5W9EtJmTmKyDGpICo

https://www.ft.com/content/f0184274-1ece-4827-add1-e96a870efa53