At the start of 2025 many people were watching Bitcoin closely. (You mentioned $70K — note: actual data shows BTC was higher then — about $94K on Jan 1, 2025). By the start of 2026 Bitcoin was near $88K, then fell again as risk appetite dropped.

What caused the recent fall?

  • Risk-off in markets: When tech stocks and other risky assets fell, traders sold Bitcoin too. That broad sell-off removed buyers and pushed price down.

  • Big holders & fund outflows: Large investors and ETFs pulled money out or took profits, which reduced demand.

  • Forced selling and technical breaks: As price weakened, leveraged trades were liquidated and many automatic stop-orders executed — that made the drop faster.

How politicians (including Trump) move crypto markets

Politicians can affect crypto markets simply by what they say or promise. In 2024–25, pro-crypto statements and policy promises from President Donald Trump helped lift investor optimism — and that sentiment was priced into markets. Crypto executives also supported his campaign, so political signals mattered for investor confidence.

When a politician signals government-friendly policy — for example, talk about a national “crypto reserve” — it can boost prices because investors expect big, stable buyers or looser rules. Trump did announce plans for a national crypto reserve in 2025, which lifted sentiment at the time.

Why the idea of a U.S. “Bitcoin reserve” didn’t immediately push BTC back up

Some investors believed Bitcoin wouldn’t make a sustained new high until the U.S. government formally adopted BTC as a reserve. But officials and lawmakers pushed back — clarifying that any “reserve” talk did not mean using taxpayer money to buy crypto, and that seized crypto (not public funds) was the more realistic source. That pushback removed a major tailwind for prices.

Bottom line

Bitcoin’s moves are still driven by money flow and confidence. Political promises can give big temporary boosts, but real, lasting rallies usually need sustained buying from big institutions or clear policy changes — not just campaign talk. If the U.S. government actually decided to hold BTC as a reserve (or ETFs kept seeing big net inflows), that would be a stronger reason for a durable breakout. Until then, expect volatility.