Bitcoin Loses All Trump‑Era Gains — Price Falls to $68,830 Amid Crypto Market Uncertainty | Feb 7, 2026

Bitcoin Loses Trump‑Era Gains — Crypto Market Faces Deepening Uncertainty

As of February 7, 2026, the world’s largest cryptocurrency, Bitcoin, has erased all the price gains it achieved following U.S. President Donald Trump’s 2024 election victory, marking a dramatic shift in the crypto landscape. Bitcoin’s price currently hovers around $68,830.29, down 46% from its all-time high of $127,000 in October 2025. The total global crypto market capitalization stands at approximately $1.37 trillion, compared to $2.5 trillion at its peak last year. Bitcoin’s dominance is now roughly 45%, down from 52% in late 2025, reflecting broader losses across altcoins.

This blog explores the reasons behind this downturn, the influence of Trump-era expectations, current market dynamics, and what the future could hold for Bitcoin and crypto investors.

Trump’s Crypto Optimism and Bitcoin’s Surge

After Donald Trump won re-election in 2024, investor enthusiasm for digital assets surged on expectations of crypto-friendly policies. Bitcoin jumped from $85,000 in November 2024 to $127,000 in October 2025, a 50%+ gain in under a year. During this period, daily trading volumes reached $55 billion, and institutional inflows were estimated at $15 billion, highlighting strong demand.

Trump’s pro-crypto rhetoric, including discussions around stablecoin regulation and potential national Bitcoin reserves, amplified confidence. Corporate treasuries holding Bitcoin increased by 12% in 2025, adding approximately $5 billion in institutional capital. Many market participants viewed Bitcoin as a hedge against inflation, as U.S. consumer price inflation hovered around 4.6% in 2025, and Bitcoin’s gains outpaced traditional assets like gold, which rose 8% in the same period.

However, this optimism was tempered by broader market forces and evolving economic conditions. Recent price action demonstrates that Bitcoin’s meteoric rise was not immune to global financial volatility and structural challenges.

Market Downturn and Loss of Gains — Price and Cap Collapse

Entering 2026, Bitcoin’s rally reversed sharply. On February 7, 2026, Bitcoin trades near $68,830.29, effectively wiping out all post-Trump election gains. The total crypto market cap now sits around $1.37 trillion, a $1.1 trillion decline from the highs of late 2025.

Several key figures illustrate the downturn:

Liquidity & Volatility: Daily trading volumes dropped from $55 billion in October 2025 to $32 billion in February 2026, reducing market depth.

Altcoin Losses: Ethereum fell to $4,250, down 48% from its $8,200 peak. Cardano lost 42%, Solana 55%, and Polkadot 50%.

Market Pressure: Bitcoin’s 30-day correlation with S&P 500 increased to 0.62, indicating higher exposure to traditional market fluctuations.

Investor Sentiment: Fear & Greed Index registered 15/100 (extreme fear), reflecting the lowest sentiment since mid-2022.

Forced liquidations due to leveraged positions contributed to additional selling pressure. Analysts estimate that $10–15 billion worth of positions were liquidated in the past two weeks alone.

Trump’s Influence, Investor Expectations, and What’s Next

While Trump-era optimism initially propelled Bitcoin to $127,000, current macroeconomic factors and regulatory uncertainty have outweighed political sentiment. Experts note:

Macro sentiment matters: Broader monetary policy, including potential Fed rate hikes of 25–50 bps, influences crypto prices more directly than political rhetoric.

Liquidity & structural behavior: Reduced liquidity, combined with high leverage and institutional rebalancing, increases volatility.

Looking ahead, key variables will shape Bitcoin’s future:

Federal Reserve signals: Clear guidance on interest rates and liquidity support may stabilize markets.

Regulatory clarity: Progress on crypto laws, taxation, and stablecoin frameworks can improve confidence.

Institutional flows: Renewed inflows from bank-backed ETFs or corporate treasuries (potentially $3–5 billion) could support prices.

Investor sentiment: If global risk appetite improves, Bitcoin could test resistance near $80,000–$85,000. Conversely, sustained fear may push it toward support levels of $65,000–$66,000.

Bitcoin’s journey highlights the interconnectedness of policy, liquidity, and investor psychology. Even with Trump-era optimism, structural challenges and macroeconomic factors dominate price movement today.

Conclusion: A Data-Driven Perspective

As of Feb 7, 2026, Bitcoin stands at $68,830.29, losing 46% of its Trump-era peak gains, while the total crypto market capitalization has dropped to $1.37 trillion. Altcoins like Ethereum, Cardano, and Solana reflect losses between 42–55%, showing a broad market correction.

Despite Trump-era optimism fueling a 2025 rally, liquidity issues, Fed uncertainty, and extreme investor fear have reshaped the crypto landscape. Analysts expect support near $65,000–$70,000, but continued volatility remains likely. Figures, percentages, and market caps illustrate that while a recovery is possible, the current environment is highly cautious, making data-driven decisions crucial for investors.