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Bitcoin Plummets $1.2 Trillion, Erasing Trump-Era Gains
🇬🇷 Greece /Technology

Bitcoin Plummets $1.2 Trillion, Erasing Trump-Era Gains

From Ta Nea · () Greek

Translated from Greek, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Bitcoin's market capitalization has plummeted by over $1.2 trillion in eight months, falling from a record high of $126,000 to just above $60,000.
  • This sharp decline erased gains made during Donald Trump's second presidential term, with Bitcoin losing nearly 30% of its value this year.
  • Investors are re-evaluating cryptocurrencies, with some shifting focus to artificial intelligence and major IPOs like SpaceX.

Bitcoin has experienced a dramatic downturn, shedding over $1.2 trillion in market capitalization within eight months. The cryptocurrency fell from its autumn high of $126,000 to just above $60,000, erasing gains accumulated during Donald Trump's second presidential term. This sharp correction marks a new cycle of uncertainty for investors.

The current trajectory contrasts sharply with the period following Trump's 2024 election, when optimism about a favorable stance toward cryptocurrencies fueled a rally. Bitcoin's value surged past $100,000 then. However, investor sentiment has shifted significantly. The cryptocurrency has lost nearly 30% of its value since the start of the year and over 6% since Trump took office. In comparison, the S&P 500 index has risen nearly 10% this year and 30% during Trump's second term.

I believe that bitcoin has lost its orientation.

— Mark CubanAn entrepreneur and investor, expressing his view on Bitcoin's performance in May.

This prolonged stagnation has prompted many investors to liquidate their holdings. BlackRock's main Bitcoin ETF saw net outflows for multiple sessions between May 15 and June 3. The initial surge in Bitcoin around the Iran conflict in late February, which sparked discussions about its role as "digital gold," has since dissipated. Meanwhile, U.S. stocks have recovered from initial war-induced drops and reached record highs.

Investor Mark Cuban expressed skepticism in May, stating on a podcast that he believes Bitcoin has "lost its way" and has sold most of his crypto holdings. Factors contributing to Bitcoin's decline include a significant flash crash on October 10, which triggered billions in liquidations. While stocks and gold have recovered, Bitcoin remains under pressure. The broader crypto market has also suffered, with Coinbase shares falling approximately 30% year-to-date. The growing focus on artificial intelligence and preparations for major IPOs, such as SpaceX, are diverting investor attention from cryptocurrencies.

Many of the speculative funds may be selling bitcoin and turning to artificial intelligence.

— Jonathan BierCEO of Farside Investors, commenting on investor behavior.
DistantNews Editorial

Originally published by Ta Nea in Greek. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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