Bitcoin falls below US$73,000 despite Trump’s crypto capital push

Bitcoin’s continued softness underscores how much of the Trump crypto trade was already priced into digital assets after the sharp rally early last year. Photo by IAN MAULE/AFP via Getty Images

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Trump used a Truth Social post late Wednesday to tout the United States as the “crypto capital of the world,” praise the industry’s return to the country and renew support for the CLARITY Act, a bill designed to establish clearer rules for digital assets. Bitcoin initially steadied after the post but fell as much as 3.5 per cent on Thursday to as low as US$72,474.

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Regulatory optimism that once fuelled aggressive crypto buying is now colliding with profit-taking, slowing ETF flows and broader fatigue. The industry is struggling to regain momentum as retail participation fades, leverage unwinds and uncertainty grows over whether legislative wins would translate into meaningful near-term capital flows.

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Bitcoin’s continued softness underscores how much of the Trump crypto trade was already priced into digital assets after the sharp rally early last year. That is leaving the market increasingly vulnerable to crypto-native weakness even as equities continue to benefit from resilient earnings and optimism around the U.S. economy.

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“Conviction remains limited,” Glassnode analysts including Chris Beamish wrote in a note this week. They said roughly US$78,000 marks the average cost basis for bitcoin holders who bought within the past 155 days, a group considered especially sensitive to price declines. Bitcoin has fallen well below that threshold.

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Spot-bitcoin ETF flows, a barometer of how institutions and retail investors are treating the market, have seen major outflows in recent days. BlackRock’s IBIT, the largest of the bunch of funds trading in the U.S., saw a more than US$520 million outflow for the latest session for which data is available. That’s the biggest one-day withdrawal since January and one of the largest on record, according to data compiled by Bloomberg. Overall, Bitcoin ETFs saw US$1.2 billion come out over the past week.

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These trends are emerging even as the crypto industry has been on the receiving end of positive headlines. The U.S. Commodity Futures Trading Commission and Gemini Trust Co., led by the billionaire Winklevoss brothers, are looking to to dissolve a settlement that resulted in the cryptocurrency exchange agreeing to pay US$5 million to end an agency lawsuit.

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“It seems like investors are throwing in the towel,” said Matt Maley, chief market strategist at Miller Tabak + Co. “The president seems to be trying to jawbone one of his favourite personal assets higher, but this one is harder to influence since its trend has been lower since last October.”

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—With assistance from Nicola M White.

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