• Bitcoin sinks below $70,000, losing all gains since Trump's election.
• The global crypto market has lost $2 trillion since its peak in October 2024.
• Investor concerns include regulatory uncertainty and shifts in Fed policy.
• Ethereum and other cryptocurrencies also faced significant losses.
• Market experts suggest a shift toward "reset" rather than a short-term correction.

Bitcoin's price fell below $70,000 earlier this week, marking the first such dip since the election of Donald Trump as U.S. President in November 2024, which originally catalyzed a significant surge in cryptocurrency values. The digital currency reached a low of approximately $66,000, erasing gains made during Trump's presidency amid pervasive investor concerns about rising interest rates and geopolitical tensions, according to Indiatimes and AA.

The broader cryptocurrency market has also experienced severe declines, shedding around $2 trillion in value since its peak of $4.379 trillion in October 2024. Analysts from CoinMarketCap noted that the global crypto market valuation has now dropped sharply, with Bitcoin itself seeing a decline of nearly 28% this year, largely due to waning risk appetite among investors, states ABC News and Channel News Asia.

Investor sentiment has shifted significantly due to uncertainty surrounding Federal Reserve policy, especially following Trump's nomination of Kevin Warsh to lead the central bank. Analysts argue that Warsh's expected stance on monetary tightening may diminish the liquidity that has historically supported speculative assets like cryptocurrencies. This concern has perpetuated a sell-off in the crypto markets, as many traditional investors appear to be pulling back, as highlighted by BBC and Indiatimes.

Other cryptocurrencies have not escaped the downturn; Ethereum, for example, saw its price dive approximately 38% since the start of 2026. The cumulative influence of regulation hesitance and a weakening tech sector has created adverse environments for digital tokens. Notably, as Bitcoin experiences its lowest valuation since October 2024, financial analysts indicate that this 'capitulation mode' reflects a significant pivot in investor strategy, as examined by ABC News and Channel News Asia.