Bitcoin dips below US$70,000, wiping out gains since Trump election win amid Warsh Fed fears

Bitcoin fell below US$70,000 on Thursday, erasing gains made since Donald Trump's election win in November 2024. The cryptocurrency has dropped nearly 8% this week and is down approximately 45% from its October high. The decline is attributed to market concerns surrounding the potential nomination of Kevin Warsh as the next Federal Reserve Chair. Analysts believe Warsh's expected policy of shrinking the Fed's balance sheet would remove a key support for speculative assets like cryptocurrencies. The global crypto market has lost nearly US$1.9 trillion in value since early October, with US$800 billion wiped out in the last month.

Bitcoin's value has significantly declined in early 2026, erasing gains made since Donald Trump's 2024 re-election as US President. As of February 5, 2026, the cryptocurrency fell below $71,000, marking a nearly 20% drop since the start of the year. Bitcoin's decline began in mid-January after reaching a peak of over $127,000 in October 2025. The initial surge after Trump's re-election was fueled by expectations of relaxed cryptocurrency regulations, further supported by Trump's pro-crypto stance and the establishment of a strategic crypto reserve. However, a Trump-backed bill aimed at regulating cryptocurrency trading has stalled in the US Senate due to disagreements, creating uncertainty within the industry.