Digital currencies had soared after Trump was elected in November 2024, as he was widely viewed as a strong supporter of the sector.

One month later, bitcoin – the world’s largest cryptocurrency – crossed the US$100,000 mark for the first time, a milestone Trump publicly celebrated.

Bitcoin suffered a sharp setback in April, falling below US$75,000 after the announcement of sweeping US tariffs rattled global markets.

The volatile asset later resumed its rise, reaching a record high of US$126,251.31 in October, before undergoing another pullback.

The latest downturn is largely driven by ongoing regulatory uncertainty.

While Congress passed a law in July to regulate stablecoins – a form of cryptocurrency backed by traditional assets – a broader crypto bill, the Clarity Act, has stalled in the Senate.

“Expectations for progress on the Clarity Act have not been met,” said James Butterfill, a researcher at digital asset manager CoinShares, describing the uncertainty as a “headwind” on crypto prices.

Bitcoin’s decline deepened after Trump announced Friday he would nominate former Federal Reserve governor Kevin Warsh to be the next US central bank chief.

Warsh, seen by observers as a defender of the Fed’s independence, reassured traditional markets, prompting investors to sell safe-haven assets such as gold and silver, whose prices plunged.

Many investors also rushed to sell cryptocurrencies and other risky assets to help raise cash.

Trump’s close ties to the crypto sector have sparked accusations of conflicts of interest, as he has promoted his own cryptocurrency-related ventures since returning to office.

According to recent Bloomberg estimates, his family’s fortune grew by US$1.4 billion last year from digital assets alone.

Just hours before his inauguration in January 2025, the 79-year-old billionaire launched his own cryptocurrency, $TRUMP.

After a blockbuster debut, it has since lost around 90% of its value from its peak.