Bitcoin Plunges 50% from Trump-Era Peak

Bitcoin's meteoric rise following President Trump's 2024 reelection has fully reversed, with the cryptocurrency now trading more than 50% below its all-time high reached in early 2025. The initial surge was driven by expectations of pro-crypto regulatory policies and fiscal stimulus, but the rally proved unsustainable as macroeconomic headwinds intensified. The Federal Reserve's aggressive tightening cycle, coupled with a broader risk-off sentiment in global markets, has crushed speculative assets like Bitcoin. Additionally, the lack of concrete crypto-friendly legislation from the Trump administration has disappointed investors who had priced in rapid deregulation. On-chain data shows a significant exodus of short-term holders, while long-term accumulation patterns suggest a potential floor forming. However, without a clear catalyst—such as a Fed pivot or a major institutional adoption announcement—the path of least resistance remains downward. The current price action mirrors the post-2017 bubble burst, though the underlying infrastructure is far more mature. A recovery to previous highs will likely require a fundamental shift in monetary policy or the emergence of a new narrative driving demand.

Read full article on Decrypt