Why is Bitcoin Crashing Under Trump?

Bitcoin is experiencing a significant downturn, hitting its lowest price in over a year. Despite previous optimism fueled by 'crypto-friendly' policies, a combination of institutional sell-offs and broader market volatility is driving this 'crypto winter'.

Alright Jittie fam, let's talk about the elephant in the room: Bitcoin's price. It's been a bit of a wild ride lately, and not the fun kind. We're seeing Bitcoin's value dip to its lowest point in over a year, and it's got everyone asking, 'What's going on?!' Just recently, Bitcoin slid below the $66,000 mark.

That's a decent drop from its peak of over $127,000 back in October last year. If you've been watching your portfolio, you'll know it's been a tough start to the year, with Bitcoin down about 30% since January. Why is Bitcoin taking a tumble?

It's never just one thing, right? Here's the lowdown on what's pushing prices down: 1. Institutional Investors are Selling Off Remember all the hype around US exchange-traded funds (ETFs) buying up Bitcoin last year?

Well, the tides have turned. Reports from places like CryptoQuant are showing that these big players are now selling, not buying. Deutsche Bank analysts noted billions flowing out of these ETFs each month since late last year.

This steady selling signals that traditional investors might be losing interest, and overall pessimism about crypto is growing. If you're curious about how ETFs work, we've got a guide on crypto ETFs that breaks it down simply. 2.

Less Hype, Less Liquidity Adam Morgan McCarthy from Kaiko hit the nail on the head when he said the fall is tied to less market interest and lower trading volumes. Crypto markets often thrive on 'hype-driven' cycles, where people jump in due to FOMO (fear of missing out). When that hype fades, so does trading volume, which means less liquidity.

This article is general information only and is not financial advice. Cryptocurrency prices are volatile. You can review the live BTC/USD chart on TradingView before making any decision.

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