Bitcoin has experienced a sharp decline this week, reaching its lowest level since late 2024 before mounting a modest recovery on Friday.
Bitcoin briefly dipped just above $60,000 on Thursday before rebounding 3.3% to $64,948 by early Friday. By Friday evening, it had risen 7.82% after suffering its worst one-day loss on record, when it plunged as much as 14%, fell below $64,000 for the first time since September 2024, and wiped $200bn (£178bn) off its value. The world’s largest cryptocurrency is now hovering above $72,000 following a broader tech-driven market sell-off.
The current valuation represents a significant retreat from the digital asset’s peak of 122,200 dollars achieved in October of last year, marking a decline of 47% from its record high. This substantial correction has occurred despite prominent support from US President Donald Trump, whose administration has implemented a range of cryptocurrency-friendly policies.
The White House has pursued several initiatives intended to bolster the digital asset sector, including support for cryptocurrency legislation, the dissolution of enforcement teams, and the launch of the President’s own digital coin. World Liberty Financial, an investment vehicle linked to the Trump family, has maintained an active presence within the sector throughout this period.
Market analysts attribute much of the recent weakness to President Trump’s nomination of Kevin Warsh to lead the US Federal Reserve. Warsh is widely expected to favour elevated interest rates, a monetary policy stance that typically discourages speculative investment in higher-risk assets such as cryptocurrencies.
The broader cryptocurrency market has suffered considerable losses, with other major tokens including Ethereum and Solana recording substantial declines. Total market capitalisation has contracted by more than 2 trillion dollars since the October peak, reflecting widespread investor retreat from digital assets.
Analysts have cautioned that Bitcoin could decline below 40,000 dollars, noting an increasingly strong correlation between cryptocurrency valuations and US dollar strength. This relationship suggests that continued dollar appreciation could place additional downward pressure on digital asset prices in the near term.
