Free fall to $60,000 notes Bitcoin, erasing all profits of Donald Trump's second term and causing massive capital flight.
The bitcoin He's going through one of the worst periods of his life. From the historic high of $16,000 last fall, it now moves into a free fall and fights just over $60,000, after the continuous waves of mass sales.
And the numbers don't end there. Within just eight months, this downhill disappeared over $1.2 trillion from the total market value and erased all the profits that had occurred during Trump's second term.
Yes, last Friday. bitcoin touched its lowest level from the period just before Donald Trump's re-election, in 2024.
The most popular cryptocurrency records a dip of almost 30% this year. Same time, the S&P 500 stock index has risen nearly 10% in the year and makes 30% profits since Trump started his second term.
This low course over the last eight months He forced many investors to sell an aron, while others think again if the crypto finally have a place in their portfolio. Even BlackRock's top bitcoin ETF saw the money leave with the sack every day from 15 May to 3 June, according to Farside Investors figures.
The bitcoin temporarily took on in late February as the war broke out with Iran, causing analysts to wonder whether to repeat the "digital gold" that protects investors from uncertainty.
However, very quickly lost those profits too. On the contrary, American shares exceeded the initial shock of the war and break one record after another, while normal, tangible gold may be stagnant this year, but it has jumped 60% since Trump took over.
What's wrong with the crash?
As it says CNN, bitcoin has not been able to raise its head since October 10 when a sudden crash caused billions to liquidate. Since then, the market has staggered, while stocks and gold fly. And as if that were not enough, other factors came to increase the pressure.
The whole krypto branch feels hit, with the share of the Coinbase Exchange sunk by 30% this year.
At the same time, Madness with Artificial Intelligence has hit red in recent weeks, stealing glory and capital from cryptocurrencies. The enthusiasm for huge public records, such as that of Elon Musk's SpaceX, which also features an AI section, seems to replace the crypto hype. Many speculative funds leave bitcoin to pursue Artificial Intelligence, according to Farside Investors' Jonathan Beer.
Another major headache is the uncertainty with Federal Reserve inflation and interest rates. Facts actually and the strong labour market make traders think interest rates will remain high for a long time to come. This tight monetary environment drains liquidity from the system and Crypto traditionally suffers when there is no "hot" money on the market.
As if this were not enough, when the market takes the downside, the traders who have played with borrowed money see their positions automatically shut down from the exchanges once the losers grow up. This domino fluidization makes the crash even wilder. Only at the beginning of the month, within a five-day period, were nearly $2.5 billion worth of market positions burned.
MicroStrategy, the barometer company for bitcoin, also entered the game, which constantly buys the currency on behalf of its investors. The company revealed last week that it sold 32 bitcoin, which had to do since 2022.
This move panicked the market, sending the cryptocurrency to -17% within a week, at its worst performance since November 2022. Of course, on Monday the company changed its tromario and bought 1,550 bitcoin, somewhat picking up loss across the industry.
What dawns on the market
In this swamp of bitcoin, some other coins manage to steal impressions. For example, Hype, a currency associated with the Hyperliquid Exchange, has made an incredible +150% this year, writing in the oldest of its shoes the general crisis.
The greatest hope for the industry to rise again in the immediate future is the CLARITY Act bill, which is currently being discussed in the U.S. Congress. If voted, it will lay clear rules in the game, fully legalising the market for crypto in the eyes of the great investors.
The bill will bring arrangements for both stablecoins that are tied to the dollar, and other heavy coins such as Ethereum.
If CLARITY Act becomes state law, it can function as the ultimate fuel for prices. Even those who had forgotten crypto and believed they died will see that there is now an official legal framework in the US that protects and facilitates investment funds, changing the terms of the game again.
