Bitcoin Suffers Major Blow, Price Drops to $70,000

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News Desk: The price of Bitcoin, the world’s most popular cryptocurrency, has fallen below $71,000. The gains Bitcoin made after Donald Trump’s victory in the 2024 election have now been completely erased following a continuous week-long decline.

On Thursday (5 February), Bitcoin’s price dropped by more than 7 percent in a single day. The downward trend, which began in mid-January, has continued since then. At around 4:30 am Greenwich Mean Time, Bitcoin was trading at approximately $70,900.

As a result of the recent slump, Bitcoin’s value has declined by nearly 20 percent since the beginning of this year.

Previously, in December 2024, Bitcoin reached the $100,000 milestone for the first time. It later surpassed that level again in February and May 2025. However, after hitting an all-time high of over $127,000 in October, the digital asset began to trend downward.

Following Trump’s re-election, expectations of relaxed cryptocurrency regulations in the United States had driven sharp price increases in Bitcoin and other digital currencies. During his election campaign, Trump pledged to turn the United States into the world’s “cryptocurrency capital.”

Ahead of the election, he also launched a crypto firm named World Liberty Financial along with his sons.

After taking office, Trump announced plans to establish a strategic crypto reserve that would include Bitcoin and four other cryptocurrencies.

However, a Trump-backed bill related to regulating cryptocurrency transactions remains stalled in the US Senate. Disagreements between banks and crypto companies have prevented the bill’s passage, creating uncertainty about the future of the sector.

Meanwhile, on Wednesday, Democratic lawmaker Ro Khanna said he would investigate Trump’s crypto firm, World Liberty Financial. A report by The Wall Street Journal stated that representatives of an Abu Dhabi official had signed a $500 million deal to purchase a 49 percent stake in the company.

Alongside Bitcoin’s decline, global stock and commodity markets also fell on Thursday. Silver prices dropped by as much as 16 percent at one point, while Hong Kong’s main stock index fell by around 1.3 percent and Japan’s index declined by 0.7 percent.

Source: Al Jazeera