Bitcoin plunged toward $62,000 in early February, hitting its lowest levels since October 2024 as the market continued to flush out leveraged traders amid a broad selloff across financial markets. The leading cryptocurrency has now lost about half its value from its October 2025 peak, erasing all gains made since Trump took office and signaled support for the crypto industry. Investor optimism had previously been buoyed by Trump’s direct involvement in the sector and his pledges to ease regulation, priming to make the US the “crypto capital of the world.” The selloff has also spread to other cryptocurrencies, related ETFs and companies that hold massive bitcoin holdings such as Strategy Inc. The latest drop puts long-term bitcoin holders to the test amid mounting doubts about digital assets’ real-world utility. Some analysts argue that bitcoin has been exposed as a largely speculative asset, failing to function as a debasement hedge comparable to gold and other precious metals.