Bitcoin Plunges Again After Brutal Week of Losses

Bitcoin has suffered another sharp sell-off, extending a turbulent downturn that has erased roughly one-third of the cryptocurrency’s value since the start of the year. On Friday, the world’s most valuable digital asset fell nearly 14%, trading around $62,900 in early Asian hours, marking one of its steepest single-day drops in months.

The renewed price drop follows a volatile week in global markets and underscores the extreme price swings that continue to define the cryptocurrency sector.

From Record Highs to Rapid Decline

Bitcoin’s price fall represents a dramatic reversal from its euphoric highs just months ago. After surging on optimism surrounding a more crypto-friendly policy environment in the United States, the digital currency crossed the $100,000 mark in December 2024 and peaked above $127,000 in October 2025.

Bitcoin Plunge Deepens as Crypto Loses All Gains Since Trump’s Re-election

Since then, sentiment has shifted sharply. Regulatory uncertainty, geopolitical tensions, and stalled legislation in Washington have weighed heavily on investor confidence. A Trump-backed bill aimed at regulating digital assets has failed to gain momentum in the US Senate, exposing divisions between traditional financial institutions and crypto-native firms.

Political Scrutiny and Regulatory Headwinds

Adding to market anxiety, the Trump family’s cryptocurrency venture, World Liberty Financial, has come under congressional scrutiny. Reports that an Abu Dhabi-linked investor committed $500 million for a major stake in the company have prompted lawmakers to question potential conflicts of interest and their influence on US policy.

Critics argue that the lack of clear guardrails has left the crypto market vulnerable to sharp corrections, particularly following the 2025 speculative boom. Lawmakers and watchdogs have called for tighter oversight, warning that unchecked volatility could spill over into the broader financial system.

Global Markets Add Pressure

Bitcoin’s latest tumble comes amid a wider sell-off across global asset classes. US equities have retreated, with the S&P 500 and Nasdaq Composite both posting notable losses amid fears of an overextended tech sector. Shares of major technology companies have fallen sharply, amplifying risk-off sentiment among investors.

The downturn has been equally severe in Asia-Pacific markets. South Korea’s KOSPI dropped around 5% in early trading, while Japan’s Nikkei 225 and Australia’s ASX 200 also slid, reflecting global unease.

Crypto and Commodities Under Stress

The broader cryptocurrency market has been hit hard alongside Bitcoin. Ether, the second-largest digital asset, is down more than 30% this year, while the total crypto market has reportedly lost trillions in value since late 2025.

Even traditional safe havens have not been spared. Gold prices have declined more than 4% in recent sessions, while silver has seen even sharper swings, highlighting how inflation fears and shifting interest rate expectations are unsettling markets across the board.

What Comes Next for Bitcoin?

Despite its dramatic price fall, Bitcoin remains far above its pre-2024 levels, reinforcing both its resilience and its reputation for extreme volatility. Analysts remain divided on whether the current downturn represents a healthy correction or the start of a deeper crypto winter.

For now, Bitcoin’s sharp slide serves as a reminder that while digital assets promise innovation and high returns, they also carry significant risk—especially in an uncertain global economic climate.