Bitcoin’s Dive into : Why Trump’s Support Can’t Stop the Crash

Bitcoin has taken a hard hit lately. The top cryptocurrency dropped to its lowest point in over a year. Prices fell below $66,000 on Thursday and sat around $62,900 by Friday morning. This slide started at the end of January when Bitcoin dipped under $80,000.

Just last October, Bitcoin reached a record high above $127,000. It pulled back to about $90,000 by December. Now, it’s down roughly 30% since the year began. Even with strong backing from U.S. President Donald Trump, the market feels the chill of a full-blown crypto winter.

What Sparked Bitcoin’s Sharp Decline?

The crypto market faces pressure from wider economic shakes. Global stock sell-offs due to geopolitical tensions play a big role. Prices of gold and silver have swung wildly too, hurting investor mood.

Experts point to reversed institutional demand. Last year, big players bought Bitcoin heavily. This year, they’re selling. U.S. Bitcoin ETFs saw huge outflows. Billions left these funds each month since an October downturn. January alone saw over $3 billion exit, after $7 billion in November and $2 billion in December.

This selling shows traditional investors pulling back. Pessimism about crypto is growing. Lower trading volumes mean less liquidity. Small moves turn into big swings. The market runs on hype and fear of missing out (FOMO). Without that buzz, volumes drop, making trades harder and prices fall faster. It’s a tough cycle.

• Key factors:
• Stock market volatility from global risks
• Gold and silver price rollercoaster
• ETF outflows totaling billions
• Fading hype and low liquidity

Understanding the Phenomenon

A crypto winter means long periods of falling or flat prices. It happens from bad economic news, strict rules, or lost trust. Right now, we’re in one. Gold hit $5,595 per ounce last week, silver nearly $122. But they crashed again – gold to $4,872, silver to $77. Geopolitical woes and a stronger U.S. dollar pushed investors away from safe-haven assets like these. Crypto feels the ripple.

Ether, the number two crypto, dropped 19% this week to $1,854. The whole market hurts.

Trump’s Pro-Crypto Push: A Quick Recap

Bitcoin surged after Trump’s White House return. Many hoped for friendly rules. At a 2024 Bitcoin event, he called the U.S. the “crypto capital of the planet” and promised a Bitcoin strategic reserve.

In March 2025, he launched a national crypto reserve with Bitcoin, Ether, XRP, Cardano, and Solana. The GENIUS Act set rules for stablecoins – cryptos tied to steady values like the dollar. Last month, draft laws aimed to clear up who regulates crypto.

Trump’s family runs World Liberty Financial (WLFI), which launched USD1, a dollar-backed stablecoin using U.S. treasuries. Big personal stake there.

Yet, these steps haven’t stopped the bleed. Markets care more about global forces right now.

Past : Lessons from History

This isn’t new. Bitcoin peaked in late 2017, then crashed into 2018 amid tough rules in the U.S., Canada, and beyond.

Another hit in late 2022 after a 2021 high. The FTX collapse – a major exchange filed for bankruptcy amid a cash crunch and global probes – triggered it.

These winters last about 13 months on average. They bring despair, but crypto bounces back strong.

The Latest Trigger: Fed Moves and New Leadership

The slide sped up recently. Fed Chair Jeremy Powell said on January 28th that rates stay put. Trump, who criticized Powell for slow cuts, named Kevin Warsh as the next chair.

Crypto reacts fast to money policy shifts. High rates make risky assets like Bitcoin less appealing. This combo – no cuts plus new leadership – fueled the drop in an already weak market.

Is There Light at the End of This ?

Don’t panic. Fundamentals haven’t changed. Blockchain tech, adoption, and Trump’s policies still shine long-term. Veterans of past winters say the end feels like now: gloom everywhere.

“Spring is coming soon,” one expert notes. After January 2025’s start, recovery could roar back. Watch for:

1. Lower interest rates
2. Clearer U.S. regs
3. Returning institutional buys
4. Fresh hype cycles

Bitcoin’s crash tests resolve. But history shows crypto winters end. Stay informed, diversify, and think long-term.

Final Thoughts on Bitcoin’s Path Forward

The grips Bitcoin despite Trump’s support. Macro headwinds, outflows, and policy waits dominate. Yet, crypto’s resilient. Past cycles prove rebounds follow pain. Keep eyes on Fed shifts, ETF flows, and global calm. The next bull run waits.

What do you think? Will Trump’s reserve save the day? Share in comments.

Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Did you like the news you just read? Please leave a feedback to help us serve you better

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.