Bitcoin has fallen more than 50% from the all-time high it hit in 2025 after President Trump's reelection, wiping out months of gains and leaving traders searching for a new floor. The downturn marks one of the steepest drawdowns since the crypto winter of 2022.
The post-election surge
Bitcoin exploded higher following Trump's return to the White House. Optimism over friendlier regulation and a pro-crypto administration fueled a rally that pushed the asset past its previous records in early 2025. For a time, the momentum seemed unstoppable — retail and institutional money poured in, and the narrative was all about a new supercycle.
Why the music stopped
The climb didn't last. By mid-2025, the rally stalled. Macro headwinds, a stronger dollar, and fading policy tailwinds began to weigh. The exact trigger for the reversal is hard to pin on any single event, but the trend turned decisively lower. Today, Bitcoin sits well below that 2025 peak, and the decline has accelerated through the first half of 2026.
What the drop means
A 50% retreat from a cycle top is brutal, but not unprecedented in crypto. What's different this time is the lack of a clear catalyst for the next leg up. The policy boost from the election has been fully priced in and then some. The market is now staring at a lower liquidity environment and a cautious tone from major holders.
What to watch
No one knows where the bottom is. The next few months will test whether Bitcoin can hold support above the 2024 lows. The coming weeks bring key macroeconomic data that could either soothe or spook risk assets. For now, the rally that began with Trump's win is well and truly over.
