Bitcoin Has Erased All of Its Trump-Era Gains — $1.2 Trillion Lost in Eight Months

Bitcoin's market value has fallen by $1.2 trillion in eight months, wiping out all gains recorded during President Donald Trump's second term. The cryptocurrency reached a record high of $126,000 just eight months ago, but has since dropped to just above $60,000. Investors have been withdrawing money from Bitcoin investment products, with BlackRock's flagship Bitcoin exchange-traded fund recording daily net outflows between 15 May and 3 June. Some market participants believe capital is moving into artificial intelligence-related investments, drawing attention away from Bitcoin. Economic conditions have also weighed on cryptocurrencies, with recent inflation data and strong employment figures leading traders to reduce expectations for near-term interest rate cuts from the Federal Reserve. Higher interest rates generally reduce demand for riskier assets like Bitcoin. The recent downturn has also triggered large-scale liquidations, with nearly $2.5 billion worth of long bitcoin positions liquidated during a five-day period earlier this month. Bitcoin also reacted sharply to activity by Strategy, the company formerly known as MicroStrategy, which disclosed last week that it had sold 32 bitcoin, marking its first bitcoin sale since 2022.