Bitcoin's spectacular collapse has left investors reeling as the world's most valuable cryptocurrency plummeted to its lowest level in over a year, shedding nearly half of its all-time peak value. The price drop, which began in earnest last month, has sent shockwaves through the financial markets and disproportionately affected companies that had heavily invested in bitcoin.
The recent downturn marks a stark contrast to the cryptocurrency's meteoric rise during Donald Trump's presidency. Bitcoin soared as the president made industry-friendly moves, with its price more than doubling in 2025 alone. The currency even broke its record high of $126,210.50 on October 6th, prompting widespread optimism about the future of crypto.
However, bitcoin's valuation has taken a devastating hit in recent months, particularly during January and February. According to CoinGecko data, the global crypto market has lost an astonishing $2 trillion in value since early October. This collapse has had far-reaching consequences, with cryptocurrency ventures backed by the Trump family seeing their values plummet in response.
Bitcoin's woes are compounded by regulatory uncertainty. The US government has faced criticism for its lax approach to regulating cryptocurrencies, with some Democrats and watchdogs raising concerns about Trump's conflicts of interest. A report from the Wall Street Journal revealed that a member of the Emirati royal family had backed a $500 million investment in the Trump family's cryptocurrency company, which may have contributed to changes in US policy.
The situation is further complicated by the decline of ether, the second-largest cryptocurrency. This year alone, ether has lost over 30% of its value, adding insult to injury for investors who missed out on the crypto boom of 2025. With bitcoin's price now at a low of $63,000, it remains to be seen how the cryptocurrency market will recover from this devastating downturn.
The recent downturn marks a stark contrast to the cryptocurrency's meteoric rise during Donald Trump's presidency. Bitcoin soared as the president made industry-friendly moves, with its price more than doubling in 2025 alone. The currency even broke its record high of $126,210.50 on October 6th, prompting widespread optimism about the future of crypto.
However, bitcoin's valuation has taken a devastating hit in recent months, particularly during January and February. According to CoinGecko data, the global crypto market has lost an astonishing $2 trillion in value since early October. This collapse has had far-reaching consequences, with cryptocurrency ventures backed by the Trump family seeing their values plummet in response.
Bitcoin's woes are compounded by regulatory uncertainty. The US government has faced criticism for its lax approach to regulating cryptocurrencies, with some Democrats and watchdogs raising concerns about Trump's conflicts of interest. A report from the Wall Street Journal revealed that a member of the Emirati royal family had backed a $500 million investment in the Trump family's cryptocurrency company, which may have contributed to changes in US policy.
The situation is further complicated by the decline of ether, the second-largest cryptocurrency. This year alone, ether has lost over 30% of its value, adding insult to injury for investors who missed out on the crypto boom of 2025. With bitcoin's price now at a low of $63,000, it remains to be seen how the cryptocurrency market will recover from this devastating downturn.