Bitcoin Plunges Under $67K: Back to Pre-Trump Election Lows in Brutal Sell-Off

Bitcoin’s Shocking Drop Below <$67K>

Bitcoin has hit a rough patch. The top cryptocurrency fell another 11% in a single day, dipping below <$67,000>. This puts its price lower than levels seen before Donald Trump’s second term began. Once riding high on post-election hype, now signal big worries for investors.

What Happened to Bitcoin’s Price?

Bitcoin reached a peak of over $126,000 on October 6. But since then, it has lost nearly half its value. As of now, it trades around $66,300. This slide wipes out all gains made after Trump’s November 2024 election win.

Back then, excitement grew because many expected a pro-crypto White House. Prices climbed for months. But now, the rally is gone. The current price sits below where it was on election night.

Why Is Bitcoin Falling So Fast?

Several factors fuel this sell-off:

• Investor Pullback: People are selling risky assets like gold, silver, and crypto. They want safer options amid market fears.
• Regulation Worries: Even with Trump’s support for crypto firms, rules in Washington look shaky. A key bill on stablecoins stalled in Congress.
• Stablecoin Fight: Crypto wants to pay yields on deposits. Banks hate this idea. It could pull money from traditional accounts. No deal yet.

The White House tried to bridge gaps between banks and crypto companies. But talks failed. This adds to the gloom.

Spot Bitcoin ETFs See Huge Outflows

Many invest in Bitcoin through ETFs. These funds track Bitcoin’s price without needing to hold the coin. But investors yanked out $5.7 billion from November to January. That’s a big red flag for demand.

ETFs made Bitcoin easy for everyday folks. Now, the rush is out the door.

Crypto Stocks Take a Beating

Companies tied to crypto suffered too:

Strategy holds 713,502 Bitcoins. Bought at an average of $76,000 each, their stash is now worth less. Holdings value dropped to $47.8 billion from a $54.3 billion cost.

Trump-Linked Crypto Ventures Crumble

Even projects tied to Trump are down:

• American Bitcoin (stakes by Eric and Don Jr. Trump): Down 6.6% daily, over 80% since October 7.
• World Liberty Financial ($WLFI): Market cap fell from $6 billion to $3.25 billion.
• $TRUMP meme coin: Now $3.93, versus $45 pre-inauguration.

These drops show no one is safe in this storm.

Bigger Picture: Crypto Meets Broader Markets

U.S. stocks started the year shaky due to tariffs and Trump-Fed tensions. But they rebounded. Crypto did not. Bitcoin, called “digital gold,” acts more like a high-risk stock now.

Miners face higher costs if prices stay low. Firms like Strategy may need to sell or raise cash.

What Could Turn Things Around?

History shows Bitcoin bounces back from dips. Past cycles had 80%+ drops before new highs. Key watchers:

1. Clearer U.S. rules: Trump pushes friendly policies.
2. Fed rate cuts: Cheaper money boosts risk assets.
3. Institutional buy-in: ETFs could reverse outflows.
4. Halving effects: Less new Bitcoin supply long-term.

Short-term pain might mean long-term gain for holders.

Tips for Crypto Investors Now

Dollar-cost average: Buy fixed amounts over time to smooth volatility.

Diversify: Don’t put all eggs in Bitcoin.

Stay informed: Watch Congress, Fed, and Trump moves.

HODL if possible: Panic selling locks in losses.

Final Thoughts on Bitcoin’s Slump

The marks a tough chapter. From post-Trump highs to pre-election lows, the ride has been wild. But crypto’s story is far from over. Will regulation save the day? Or is more downside ahead? Keep watching Bitcoin charts closely.

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