Bitcoin is currently facing its biggest crash, plunging below $70,000 and hitting a wall of $60,000. According to the latest reports, Bitcoin has fallen hard, sharply breaking many closely-watched, significant support levels, causing the analysts to fear a ‘death spiral’.
After the all-time high of $126,000 in October 2025, when the ‘Digital Gold’ reached February 2026, it had already erased all its gains from 2024. With the largest liquidations happening last Friday, Bitcoin is facing the most dramatic sell-offs induced by the extreme fear sentiments in the market. This huge meltdown is keenly observed by the traders and analysts, as they are considering this as a sign of another upcoming full-blown Bitcoin crash.
Trump & His Landing in the Crypto Market
While the Bitcoin price melts drastically, the promises of Donald Trump and their contrast with his recent actions and tariff policies are sparking immense concern in the crypto market.
U.S. President Donald Trump was totally against the idea of cryptocurrencies in 2019, dismissing them as unreal and ‘out of thin air.’ Whereas, after 6 years, these views have turned upside down, making Trump the biggest champion of cryptocurrencies, especially Bitcoin.
Even though this U-turn in perspective was a wonder to the world, the reason for this complete shift was both individual and politics-based. As he left the White House after his first term, his family’s income greatly depended on digital money with blockchain projects as the biggest asset builders. However, this president-powerplay in the crypto market made Trump the centre of it. His viral promises, along with pro-crypto market policies, were a huge catalyst for the Bitcoin surge.
The Trump Promises
During his 2024 presidential campaign, Trump had huge campaigns in which he claimed to make America the ‘crypto capital of the planet’ and the ‘Bitcoin superpower of the world.’ The campaign was a huge success, securing the president’s position for him, thanks to the generous donations made by the crypto community.
Along with these repeated claims, he had also famously promised to fire Gary Gensler on his first day to let the pro-crypto figures take the lead. He had also promised to bring regulatory clarity with a ‘Crypto 2.0 Task Force’ that would help the market from lawsuits and to end the ‘Operation Choke Point 2.0’, which was used to restrict the associated operations of crypto companies with banks.
Trump had also vowed to create a strategic Bitcoin reserve, turning the seized Bitcoins from criminals into national property. This was implemented in March 2025 with the expansion of digital assets into other coins as well.
While Trump had also made policies that support decentralization and mining, advocating that all future bitcoins should be ‘Made in the US,’ the Guiding and Established National Innovation for U.S. Stablecoins (GENIUS) Act was his second grant entry into cryptocurrency. Along with this federal framework for the US-based stablecoins, he strongly opposed CBCDs and promised to create a presidential advisory council for cryptocurrencies.
The Fall: The Trump Effect on Bitcoin
Becoming the central force of the crypto market, his every action regarding the market made a huge impact on the price fluctuations for Bitcoin and other cryptocurrencies.
The Warsh Factor
While the promise was to bring pro-crypto figures to the leadership of the Federal Reserve, the most influential central bank in the world, when Trump nominated Kevin Warsh to the chair, a former Federal Reserve Governor, who is known for his hawkish ideals, created chaos in the crypto market.
The traders had assumed from the said promises and the new hike of Bitcoin to $126,000, that the low rates would continue along with government spending. Whereas with Kevin Warsh as the leader, this expectation crashed, and investors started to fear that Warsh would increase the interest rate to fight inflation and strengthen the US Dollar. This would actually put an end to the ‘easy money era’, showing the way out for the high-risk speculative assets like Bitcoin.
As institutional players started to rotate capital from BTC into risk-off assets to prepare for this change, it boosted the ETF outflows, triggering the crash.
The Liquidity Shock
After all the vows to strengthen the crypto market, in October, Trump placed a 100% tariff on all Chinese imports, putting the global market in a huge mess. The most affected were Bitcoin and the overall crypto market. This triggered forced selling by the exchange algorithms. Over a $19 billion in assets were liquidated in a day due to this, creating a shock wave in the market.
The overleveraged market with an open interest of nearly $150 billion was hit by an organic drop, which was further accelerated into a death spiral. This triggered another series of events, causing a steep downfall of Bitcoin.
The Insider Harvesting
The World Liberty Financial (WLFI) project was led and backed by the family of Donald Trump. This digital currency was seen as totally underperforming with poor infrastructure and internal mechanics. This has created a huge turmoil in the market in February 2026.
These actions that were backed ultimately by the ‘president’s power’ are not just highly contrasting to the whole promises made by Trump, but are working completely against the crypto market.
The volatility of Bitcoin is highly dependent on the external factors, and the key figures like Donald Trump, whose mere comments on social media can create a stir in the whole market. The Trump Effect, when it is obviously triggering the crash repeatedly, the speculative nature of Bitcoin is also a huge reason for this crash.
