Bitcoin, which reached a record high of $126,000 last autumn, fell to the $60,000 level due to strong sell-off waves. With this decline, the cryptocurrency market has lost more than $1.2 trillion in value in eight months, wiping out all gains from the second term of US President Donald Trump.
elchi reports that Bitcoin fell to its lowest level on Friday, shortly before Trump’s re-election process in 2024.
This indicates a reversal of the upward trend that began after Trump’s election with the expectation of a crypto-friendly administration, which had pushed Bitcoin to $100,000 for the first time a month later.
Having lost about 30 percent of its value since the beginning of the year, Bitcoin has fallen more than 6 percent since Trump took office.
During the same period, the S&P 500 index has risen by about 10 percent this year and 30 percent since the start of Trump’s second term.
Investors are moving away from cryptocurrency
An eight-month stagnation since record levels has forced some investors to sell, while others are re-evaluating the role of cryptocurrencies in their portfolios.
According to data from Farside Investors, BlackRock’s largest Bitcoin exchange-traded fund (ETF) recorded net outflows in all trading sessions between May 15 and June 3.
Bitcoin, which rose sharply in the early days of the war with Iran in late February, sparked discussions among analysts about whether this asset could once again become “digital gold” or a hedge against uncertainty.
However, the cryptocurrency failed to maintain those gains in the subsequent period. On the other hand, US stocks recovered after the initial war-related decline and reached record highs. Although trading sideways this year, real gold has gained 60 percent in value since Trump took office.
Entrepreneur and investor Mark Cuban stated in a broadcast he participated in in May that Bitcoin did not provide the expected protection, that this was disappointing, and that he had sold a large portion of his assets.
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