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Bitcoin hits lowest value since September 2024
Bitcoin fell to $60,000 on Thursday, marking its weakest performance in 16 months, despite strong backing from US President Donald Trump and his administration's pro-cryptocurrency policies.
Market reaction to Trump's Fed nomination
Analysts at Deutsche Bank attributed the recent decline to Trump's selection of Kevin Warsh as Federal Reserve chair. Investors fear Warsh may adopt a hawkish stance, maintaining higher interest rates, which typically dampens appetite for high-risk assets like cryptocurrencies.
The downturn follows a four-month downward trend, with Bitcoin losing 32% of its value over the past year. Deutsche Bank noted growing pessimism among traditional investors, who appear to be losing confidence in the digital asset.
Trump's crypto agenda and personal investments
Since returning to the White House in January 2025, Trump has actively promoted cryptocurrency, issuing an executive order to position the US as the "crypto capital of the planet." His administration has rolled back regulatory enforcement, dissolved a Department of Justice crypto oversight team, and scaled back Securities and Exchange Commission investigations into digital assets.
Trump has also deepened his personal involvement in the sector, launching a branded cryptocurrency and expanding his family's investment vehicle, World Liberty Financial. Senate Democrats reported in November that Trump's crypto holdings exceed $11 billion, with $800 million in personal income generated from transactions since his return to office.
Broader crypto market slump
The cryptocurrency market has shed over $2 trillion in value since its October 2025 peak, with $1 trillion lost in the last month alone, according to CoinGecko. Ethereum and Solana, two of the largest altcoins, have each dropped approximately 37% in 2026.
Stifel, a US investment firm, warned that Bitcoin could fall as low as $38,000, citing a growing correlation between crypto prices and the US dollar, which recently hit a four-year low.
Investor sentiment and future outlook
Joshua Chu, co-chair of the Hong Kong Web3 Association, cautioned that overleveraged investors are now facing the consequences of market volatility. "Those who bet too big, borrowed too much, or assumed prices only go up are learning about risk management the hard way," he told Reuters.
While some analysts, like Abra Capital Management CEO William Barhydt, remain optimistic about a rebound, Deutsche Bank suggested Bitcoin is transitioning from a speculative asset to one needing a defined role in the financial system.
"I wouldn't say it has to rebound, but I can't see how it doesn't-unless we end up in some kind of war."
William Barhydt, CEO, Abra Capital Management
UK crypto ownership trends
The Financial Conduct Authority reported that 8% of UK adults held cryptocurrency in 2025, down from 12% the previous year. However, the average investment size increased, with one in five crypto holders now owning between £1,000 and £5,000 in digital assets.
