Why is Bitcoin's price collapsing despite Trump's support?

### Why did Bitcoin prices fall despite Trump's support?

Despite the public support of US President Donald Trump, the cryptocurrency market has come under great pressure this week. The price of Bitcoin, the world's most popular digital currency, has fallen to its lowest level in a year. On Thursday (February 5) afternoon, the price of Bitcoin fell below $ 66,000. On Friday (February 6) morning, it fell further to around $ 62,900. The downward trend began in the last week of January; at that time, Bitcoin fell below $ 80,000. However, in October last year, it reached a historical high of about $ 127,000. Then, by December, it fell to around $ 90,000. As a result of the latest decline, the price of Bitcoin has fallen by about 30 percent since the beginning of this year. #### Why is the price of Bitcoin falling? According to analysts, global economic instability is one of the main reasons for the current decline. Geopolitical uncertainty has led to a major sell-off in global stock markets, which has also affected the crypto market. According to crypto analytics firm CryptoQuant, institutional investment has declined significantly. Exchange-traded funds (ETFs) that bought Bitcoin at a large rate last year have started selling this year. Deutsche Bank analysis says that since the big drop in October 2025, money has been continuously flowing out of spot Bitcoin ETFs. More than $3 billion has been withdrawn from these ETFs in January this year alone. Previously, investors withdrew about $7 billion and $2 billion in November and December 2025, respectively. This suggests that traditional investor interest is decreasing and market uncertainty is increasing. According to crypto analyst Adam Morgan McCarthy, the decrease in trading volume in the market is also a major reason. As transactions decrease, liquidity decreases, resulting in a large impact on even small price changes and accelerating the price decline. This further reduces investor interest, creating a negative cycle. ‘Crypto winter’ refers to a prolonged period of price decline or stagnation. Global economic stress, high interest rates, strict regulatory policies, and investor distrust play a role in this. #### Impact on other markets Recent volatility in gold and silver prices has also affected the crypto market. Investors are moving away from risky assets due to the trend towards safe investments. As a result, sales in cryptocurrencies, including Bitcoin, have increased. Along with Bitcoin, other digital assets have also suffered. The price of Ether, the second largest cryptocurrency, has fallen by about 19 percent this week, falling to around $1,854 on Thursday. Overall, analysts say that while the Trump administration's policy support has created positive expectations in the market, in reality, cryptocurrency prices are still more dependent on the global economy, institutional investment, and investor confidence. As a result, even political support alone cannot prevent a market decline.