Topline
The price of bitcoin took another sharp dip Wednesday, and it’s now at its lowest price since days after President Donald Trump won the 2024 election.
Key Facts
It’s yet another major selloff for bitcoin, which was priced as high as $96,951 in the last three weeks but slowly dipped, including a 7% drop in its price Saturday.
The selloff of bitcoin isn’t attributed to just one factor, according to Rob Hadick, general partner at Dragonfly Capital, who told CNBC he is optimistic of the medium and long-term outlooks for the token.
Others aren’t as optimistic, including investor Michal Burry, credited with predicting the 2008 housing crisis, warned on Substack that bitcoin’s dip could create a “death spiral” that damages companies that have bet big on the currency, adding “there is no organic use case reason for Bitcoin to slow or stop its descent,” Bloomberg reported.
President Donald Trump’s nomination of Kevin Warsh for chair of the Federal Reserve may have led to part of the recent liquidation, experts say, but Deutsche Bank analysts Marion Laboure and Camilla Siazon said the “broader decline is mainly driven by massive withdrawals from institutional EFTs,” according to Investing.com.
Other popular cryptocurrencies, including Ethereum, BMB and Solana, also fell Wednesday as investors pulled back from high-risk assets amid heightened volatility.
Crucial Quote
“The market is caught in a momentum-driven sell-off,” according to Richard Usher, director of trading at OpenPayd, who told Investing.com he believes “the market will find itself underweight the whole asset class” when momentum shifts again.
Key Background
Bitcoin surged to record highs in the weeks following Trump’s election victory in November 2024, fueled by expectations of a more crypto-friendly regulatory environment. After bitcoin reached a record-high price of $126,198 on Oct. 6, 2025, the momentum has faded as traders have taken profits and pulled back from riskier assets. Analysts say concerns over interest rates and large investors moving money out of crypto have added to the pressure. The downturn has weighed on the broader cryptocurrency market, reversing much of the post-election momentum.