Bitcoin plummets: What’s behind the drop?

The price of Bitcoin has fallen to its lowest level in 15 months despite US president Donald Trump’s personal and public support of cryptocurrency, the BBC writes.

A single Bitcoin is now worth $66,000, its lowest level since October of 2024, with the price down 24% since the start of this year.

The drop followed months of surging Bitcoin prices, which saw the cryptocurrency hit an all-time high of $122,200 in October.

Investors were encouraged by Trump’s involvement in the sector and his outspoken support for cryptocurrencies, as well as promises to ease legislation on the industry.

Among Trump’s first actions upon re-entering the White House in January 2025 was an executive order aimed at making the US the “crypto capital of the planet”.

Bitcoin prices tend to be volatile, but analysts with Deutsche Bank said in a note on Wednesday that the latest drop was “triggered by” Trump’s nomination of Kevin Warsh, as the new chair of the Federal Reserve. Some believe he will take a more “hawkish” approach, keeping interest rates higher, whereas looser monetary policy tends to support investment in assets such as crypto currencies.