Bitcoin has erased all gains made since the 2024 U.S. election, trading below its $63,000 election-day price amid significant market volatility. The sharp decline follows a $50 million Bitcoin sell-off by the Trump-affiliated entity World Liberty Financial [WLFI] and heavy outflows from U.S. spot BTC ETFs, testing investor confidence in pro-crypto political momentum.
Bitcoin has fallen 17.14% in 2026, retracing below its $63,000 opening price from the November 2024 election. This decline effectively wipes out all gains since President Donald Trump took office, raising questions about the market’s sustained confidence in his pro-crypto policies.
The technical retracement coincides with a complex macro backdrop. The U.S. Dollar Index has fallen 8% since the election to a 2022 low, while gold has surged roughly 77% over the same period as inflation remains above the Federal Reserve’s target.
Market sentiment faced further pressure from a significant sell-off of $50 million in Bitcoin by World Liberty Financial. The move contributed to over $2 billion in total liquidations across more than 500,000 crypto traders.
This event aligned with substantial outflows from U.S. spot Bitcoin ETFs. Data from Farside UK shows a net $434 million exited these funds, with BlackRock’s IBIT ETF alone seeing $175 million in outflows.
The convergence of these factors has intensified scrutiny on the durability of the pro-crypto regulatory narrative. Investors are now assessing whether recent developments signal a strategic deleveraging or a broader loss of conviction in risk assets.
