Bitcoin Plummets After Trump-Fueled Rally

Bitcoin prices are in freefall, with analysts debunking the cryptocurrency. The initial euphoria caused by Trump's election appears to have expired.

Bitcoin crashed as much as 17% on Thursday, reaching its lowest level since October 2024 at $60,057. This drop erased the gains that followed Donald Trump's election victory in November 2024.

A long-time cryptocurrency investor told MarketWatch that the decline is incomprehensible, given the weakening dollar. Michael O'Rourke of JonesTrading noted that Bitcoin behaves more like a tech stock than a hedge against risk.

Marta Norton of Empower emphasized that Bitcoin is a risky move, not a risk-free one. The correlation between Bitcoin and gold was -0.03 on Thursday, suggesting little relationship between them.

Gemini, a cryptocurrency exchange, announced it will cease operations in Europe, the UK, and Australia.

Mr. Big Short, Michael Burry, warned that the fall of Bitcoin could turn into a self-feeding "death spiral", causing damage to companies that have accumulated the cryptocurrency.