Bitcoin (BTC-USD) continued its decline on Thursday, reaching its lowest level since November, trading low at $92,500.
The cryptocurrency’s recent decline comes after it climbed to record highs in the wake of newly elected President Donald Trump’s victory in early November. In early December, it surpassed the $100,000 mark for the first time and later eclipsed $108,000. The rally in the world’s largest cryptocurrency also led to a surge in crypto-related stocks.
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Trump is seen as a boon to the crypto industry, which was under strict scrutiny by the Gary Gensler-led Securities and Exchange Commission (SEC) during the Biden administration as the agency sought to limit fraud linked to the sector. Gensler announced plans in November to resign this month.
The incoming US president said in December he would nominate crypto-friendly Paul Atkins to lead the US Securities and Exchange Commission, replacing Gensler.
Trump has also committed to creating a new role in the White House for a “crypto czar” to oversee bitcoin policy, appointing former PayPal (PYPL) CEO David Sacks to the position.
Anthony Scaramucci, a crypto investor who worked in Trump’s first administration, has warned that investors should not get too excited about any immediate changes from what will be the most pro-crypto Congress in history.
“I would caution people: If you think that on January 20th there will be a turnaround and everything will get better for bitcoin and the digital asset community, that’s just not how Washington works,” he told Yahoo Finance in December. .
As Yahoo Finance’s David Hollerith reported in late 2024, enthusiasts don’t see the rally ending anytime soon. Meanwhile, skeptics warn that crypto’s meteoric rise over the past year could result in another crash like the one in 2022.
But in the run-up to Trump’s inauguration, the crypto rally has lost some momentum. Bitcoin is down about 6% from its level a week ago, beginning its decline on Monday as US economic data fueled inflation concerns. Investors pulled more than $580 million from U.S. bitcoin exchange funds on Wednesday, according to Bloomberg.
Crypto-related stocks largely mirrored Bitcoin’s fall. MicroStrategy (MSTR), a bitcoin holding company, is down 12.7% since Monday, when its shares soared at the start of the week. Coinbase (COIN) is down 9.6% in that period.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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