Bitcoin has given back roughly $1.2 trillion in market value in the eight months since it hit an all-time high of $126,080 in October, wiping out the gains accumulated since President Trump’s second term began — despite a White House broadly seen as crypto-friendly.
The pullback has been steep. BTC plunged to a yearly low near $60,000 last week and was trading close to $61,000 on Wednesday. Year-to-date the asset is down roughly 30%, and over the past 12 months it has lost about 45% of its value. By contrast, the S&P 500 is up 7.7% YTD, undermining the argument some investors had made that bitcoin would act as a better hedge than traditional equities.
High-profile reversals have illustrated the shift in sentiment. Shark Tank investor and billionaire Mark Cuban said last month, “I think bitcoin has lost the plot. It’s not the hedge that I expected it to be, and that was really disappointing,” and confirmed he sold most of his crypto holdings, including bitcoin — a notable U‑turn from his previous bullish stance on crypto and NFTs.
Market strategists point to several drivers behind the rout. Jonathan Bier, CEO of Farside Investors, argues that speculative money is rotating out of crypto and into newer thematic trades like AI. He also highlighted continued uncertainty over inflation, the Federal Reserve’s interest-rate path, and recent jobs data as key reasons traders are repositioning.
The episode underscores how quickly narratives in crypto markets can change: from institutional and retail enthusiasm that pushed bitcoin to record highs, to profit-taking and macro-driven flows that have eroded much of that advance. Some analysts remain bullish — firms such as Bernstein have published bullish price targets — but for now volatility and macro headlines are dictating the tape.
Expect traders to keep a close eye on macro prints and where speculative capital flows next, as those forces will likely determine whether bitcoin can stabilize or continues to cede gains.
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