Bitcoin’s Roller‑Coaster: Why Prices Fell After Trump’s Win

The value of Bitcoin has slipped back to the level it was at before Trump’s victory, leaving many investors puzzled. A recent market dip shows that the cryptocurrency is still fragile, especially after the United States Federal Reserve may cut interest rates. After Trump announced a new chair for the Fed, many traders feared that the central bank would shrink its balance sheet. This move could reduce demand for Bitcoin and other digital assets, causing sharp price swings. In October, Bitcoin hit an all‑time high above $125, 000 thanks to Trump’s pro‑crypto policies. However, a sudden crash in late October erased much of that growth and left the market still shaky. Experts say the current situation is a sign that liquidity—how easily an asset can be bought or sold—is thin. With less Bitcoin available for trade, even small orders now push prices up or down more dramatically.Some analysts believe the worst may already be over, pointing to a possible bottom that could attract buyers looking for bargains. Yet others warn that volatility will continue, as the crypto market remains linked to broader economic and political shifts. The pandemic‑era boom that followed Trump’s election also saw the Treasury create a Bitcoin reserve, but the government has not bought large amounts yet. That means the promise of a national stockpile may still be in the future, not today. Bitcoin’s price is now hovering around $61, 000, a level seen before Trump took office. While the cryptocurrency still moves in line with stock markets during stress, its value is now more influenced by global politics and central bank actions.