Bitcoin Slips Below $75,000 as Regulatory Uncertainty Weighs on Market

Bitcoin fell below the $75,000 mark on Monday, sliding back to levels last seen before the re-election of U.S. President Donald Trump, as investors retreated from riskier assets amid stalled cryptocurrency legislation in the United States.

The world’s largest cryptocurrency had surged following Trump’s election victory in November 2024, buoyed by expectations that his administration would be friendly to the digital asset industry. Within a month, bitcoin crossed the $100,000 threshold for the first time — a milestone Trump publicly celebrated.

However, the rally proved volatile. In April, bitcoin slumped below $75,000 after sweeping U.S. tariff announcements unsettled global markets. Although prices later rebounded, reaching an all-time high of $126,251.31 in October, the digital currency has since faced renewed downward pressure.

Analysts attribute the latest decline largely to regulatory uncertainty in Washington. While Congress passed legislation in July to regulate stablecoins — cryptocurrencies backed by traditional assets — broader reforms under the proposed Clarity Act have 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 situation as a significant headwind for crypto markets.

Bitcoin’s losses deepened after President Trump announced on Friday his intention to nominate former Federal Reserve governor Kevin Warsh as the next U.S. central bank chief. Warsh, widely regarded as a defender of the Fed’s independence, reassured traditional markets, prompting a sell-off in safe-haven assets such as gold and silver.

At the same time, many investors moved to offload cryptocurrencies and other high-risk assets to raise cash, adding to the pressure on prices.

Trump’s close ties to the crypto industry have continued to draw scrutiny, with critics raising concerns about potential conflicts of interest. Bloomberg estimates suggest his family’s wealth grew by about $1.4 billion last year from digital assets alone.

Just hours before his inauguration in January 2025, the former president launched his own cryptocurrency, $TRUMP. After an initial surge, the token has since lost roughly 90 per cent of its value from its peak.