Bitcoin’s gains diminish following Trump’s re-election – The Detroit News
February 8, 2026
Bitcoin has experienced a significant decline in value, erasing all the gains it made since President Donald Trump’s election. This drop in Bitcoin’s price, along with other digital assets, is a result of investor concerns about tech valuations and uncertainty surrounding Federal Reserve rate cuts. Liquidity in the market is expected to remain thin in the near future, leading to more erratic price movements.
According to Thomas Probst, a research analyst at Kaiko, this contraction in Bitcoin’s value has been ongoing for several months and is likely to persist. The recent sell-off of precious metals and cryptocurrencies on Jan. 30, following Trump’s announcement of Kevin Warsh as the next Fed chair, further contributed to the decline in digital asset prices. The market saw a decline of 20% on Feb. 5, only to rebound the next day. These fluctuations have raised concerns about the future of Bitcoin and other cryptocurrencies.
The end of last year was tumultuous for cryptocurrencies, with the largest liquidation event in history occurring in October after Trump imposed tariffs on Chinese imports. The liquidity that was lost during that event has not fully returned, leading to further instability in the market. Despite Trump’s pro-crypto policies in 2025, Bitcoin’s price has continued to decline, falling below $61,000 on Feb. 5.
However, some analysts believe that the worst may be over, with James Butterfill from CoinShares suggesting that the market could be close to a bottom. He mentioned that certain investors might view the current situation as an opportunity to buy at lower prices. The selling pressure from large holders of Bitcoin, known as “whales,” has also started to slow down.
The decreasing liquidity in the market is a major concern, as smaller orders now have a significant impact on Bitcoin’s price movements. Market participants are expecting more volatility in the near future, with few bullish indicators suggesting that the market may be approaching a bottom. The correlation between Bitcoin and traditional financial markets has increased in recent years, making Bitcoin more sensitive to macroeconomic and geopolitical developments.
Despite Bitcoin’s initial surge after Trump’s election in 2024, the current decline in price has been attributed to a lack of major developments in the crypto space. While Trump’s administration has made some pro-crypto moves, such as establishing a Bitcoin reserve, the market has not seen significant impact from these actions. The lack of a clear direction for Bitcoin from the government has contributed to the recent price declines.
In conclusion, Bitcoin’s price has experienced a significant decline, erasing all gains made since Trump’s election. The market is facing uncertainty and volatility, with decreasing liquidity and concerns about the future of Bitcoin and other cryptocurrencies. Analysts are divided on the outlook for the market, with some believing that the worst may be over while others anticipate further declines in the near future. Investors are advised to stay cautious and monitor the market closely for any potential developments.
