Bitcoin Crashes Below $60K, Erasing Post-Trump Election Gains

The sell-off began in earnest last Saturday, when Bitcoin tumbled from $84,000 to under $76,000. Attempts by bulls to stabilize the price were repeatedly rejected, leading to a cascade of declines. The culmination came yesterday with a brutal sell-off that drove the largest digital asset down to $60,000. This move not only erased all gains charted after the late 2024 U.S. election but pushed Bitcoin below the price levels from that period. According to data from QuantifyCrypto, the crash on Thursday alone wiped out more than $2.6 billion in leveraged positions, highlighting the extreme volatility and risk in the market.

As of press time, Bitcoin has rebounded to approximately $67,200, but it remains nearly 20% down for the week. The damage, however, extends far beyond BTC. Major altcoins have suffered even steeper declines. Ethereum (ETH) is down 28.3%, trading around $1,950. BNB has fallen 23%, Chainlink (LINK) is down 21%, and Monero (XMR) has declined 26%. XRP has also dropped by 20%. The overall market cap now stands at $2.38 trillion, with Bitcoin’s dominance at 56.6%. Notably, the token HYPE has defied the broader trend, soaring 19% in the same timeframe.

The dramatic price action has prompted strong reactions from prominent financial figures. Economist Nouriel Roubini, a long-time crypto skeptic, predicted a ‘crypto apocalypse,’ arguing that the evolution of money will be a gradual process rather than the rapid revolution promised by crypto advocates. Similarly, Michael Burry broke years of silence to warn that Bitcoin Treasury Companies could face existential liquidation threats if the price decline continues.

Institutional behavior is also under scrutiny. Reports indicate that US-based investors have been dumping Ethereum at a record rate, a trend evident from the declining ETH Coinbase Premium Index even before the asset’s significant decline below $1,800. This institutional exit adds substantial selling pressure to an already fragile market.

Not all commentary is uniformly negative. Tom Lee of Bitmine, who has significant exposure to Ethereum, shrugged off the ETH sell-off, stating that the crashing price does not reflect the strong fundamentals behind the token and its network. Meanwhile, Matt Hougan, CIO of Bitwise, offered a nuanced perspective, asserting that Bitcoin has been in a bear market since January 2025 but suggesting that a recovery may be closer than many expect.

Amid the panic, some analysts are looking at long-term valuation models to assess the damage. Market commentator David, using the power-law valuation model, placed Bitcoin’s fair value at just under $123,000. If this model holds, it suggests Bitcoin is currently trading at a massive discount of roughly 41-50% to its theoretical fair value. This perspective frames the current crash as a potential buying opportunity for long-term believers, despite the short-term pain.

The reasons behind the calamity remain debated. Analysts cite a trifecta of rising geopolitical tensions, uncertainty surrounding the new Federal Reserve Chair, and the unwinding of excessive leverage built up in the crypto markets. The fact that the crash followed a double-digit decline in precious metals—traditionally stable assets—further underscores the heightened volatility across financial markets. For now, the bears are in control, having successfully pushed Bitcoin down by $30,000 in just over a week and testing the resolve of even the most steadfast crypto investors.