Bitcoin (BTC-USD) continued a decline Thursday to touch its lowest levels since November, trading as low as $92,500.
The cryptocurrency’s recent descent comes after it had climbed to record highs in the wake of President-elect Donald Trump’s win in early November. It first crossed above the milestone $100,000 mark in early December and later eclipsed $108,000. The rally in the world’s largest cryptocurrency also fueled a surge in crypto-related stocks.
As of 3:33:00 PM UTC. Market Open.
Trump is seen as a boon for the crypto industry, which has been under strict scrutiny from the Gary Gensler-helmed Securities and Exchange Commission (SEC) during the Biden administration as the agency looked to mitigate fraud linked to the sector. Gensler announced plans in November to step down this month.
The incoming US president in December said he would nominate crypto-friendly Paul Atkins to lead the US Securities and Exchange Commission, replacing Gensler.
Trump has also committed to creating a new White House role for a “crypto czar” to oversee bitcoin policy, appointing former PayPal (PYPL) CEO David Sacks to the position.
Anthony Scaramucci, a crypto investor who worked in Trump’s first administration, has warned that investors shouldn’t get too excited about any immediate changes from what will be the most pro-crypto Congress in history.
“I would just caution people, if you think on Jan. 20 a switch is going to flip and everything’s going to be better and roses for bitcoin and the digital asset community, it’s just not how Washington works,” he told Yahoo Finance in December.
As Yahoo Finance’s David Hollerith reported at the end of 2024, enthusiasts don’t see the rally ending anytime soon. Meanwhile, skeptics warn that crypto’s rapid rise over the past year could result in another crash like that of 2022.
But in the run-up to Trump’s inauguration, the crypto rally has lost some heat. Bitcoin is down around 6% from its week-ago level, beginning its decline Monday as US economic data stoked inflation concerns. Investors withdrew more than $580 million from US bitcoin exchange traded funds on Wednesday, according to Bloomberg.
Crypto-related stocks have mostly mirrored bitcoin’s fall. MicroStrategy (MSTR), a bitcoin holding company, has fallen 12.7% since Monday, when shares surged to start the week. Coinbase (COIN) has dropped 9.6% over that time frame.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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