Bitcoin has lost approximately $1.2 trillion in value since its all-time high last October, erasing its post-election gains despite supportive political rhetoric. The cryptocurrency recently traded near $61,000, close to its yearly low, as analysts point to speculative capital shifting toward other assets like AI and broader economic uncertainty.
Bitcoin’s value has declined sharply, shedding nearly $1.2 trillion since reaching a record high in October. The asset recently traded near $61,000, wiping out all gains made since the last U.S. presidential election.
The market’s positive momentum has reversed, with Bitcoin down 30% year-to-date and nearly 45% over the past year. This underperformance contrasts with the S&P 500 index, which has gained over 7% this year.
Billionaire investor Mark Cuban stated he sold most of his cryptocurrency holdings. “I think bitcoin has lost the plot,” Cuban said, calling it a disappointing hedge.
Analyst Jonathan Bier, CEO of Farside Investors, explained that speculative money may be leaving Bitcoin for other opportunities like AI. He also cited uncertainty around inflation, Federal Reserve policy, and concerning jobs data as factors influencing the shift.
