Bitcoin Declines to Post-Election Low Amid Broader Risk-Off Positioning
Source: Kapitales Research
Highlights
• Bitcoin plunged to its lowest price since U.S. President Donald Trump’s election win, erasing much of the post-election rally.
• Crypto markets are under pressure as leveraged positions are liquidated and safe-haven flows re-emerge.
• Macro uncertainty, tightening financial conditions, and waning speculative demand have compounded the downturn.
Market Sell-Off and Price Action
Bitcoin experienced a significant sell-off, falling below $74,000, its lowest level since the November 2024 U.S. presidential election that returned Donald Trump to office. The drop marked a clear erosion of the substantial gains Bitcoin made following the initial post-election optimism and crypto-friendly narratives, which had previously supported price rallies throughout 2025.
The cryptocurrency extended its multi-month slide, briefly touching lows around $72,877 before modestly recovering. This sell-off is part of a broader risk-off move across financial markets, where heightened macroeconomic and geopolitical uncertainty, combined with a stronger U.S. dollar and shifting monetary expectations, have weighed on high-beta assets such as Bitcoin.
Liquidations also played a notable role: data indicate that more than $620 million in crypto positions were liquidated in a concentrated period, reflecting forced unwinding of leverage amid accelerating declines. Other major digital assets, such as Ethereum, Solana, and XRP, also saw sharp losses, underscoring the breadth of the crypto risk downturn.
Macro Drivers and Risk Sentiment
Multiple factors have contributed to the negative momentum in the cryptocurrency market. Persistent geopolitical tensions, concerns about global growth, and tighter financial conditions have pushed capital toward traditional safe havens, pressuring speculative markets. The interplay of tariff uncertainties, monetary policy recalibration, and equity market volatility has dampened investor confidence, undermining appetite for crypto exposure.
A stronger dollar over recent sessions has further pressured dollar-priced commodities and digital assets, making Bitcoin relatively less attractive to foreign investors. These cross-asset dynamics illustrate how macroeconomic backdrops continue to shape crypto performance, especially during periods of risk aversion.
Analyst View
Analysts view the latest drawdown as a macroeconomic repricing event rather than a structural loss of faith in Bitcoin’s long-term potential. While short-term volatility may remain elevated amid ongoing risk-off sentiment, foundational drivers such as institutional participation and broader adoption trends are expected to temper the downturn over time. Monitoring shifts in monetary policy, currency strength, and risk sentiment will be critical to assessing Bitcoin’s path forward.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media, such as images or music, used on this platform are either owned by Kapitales Research, obtained through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Bitcoin Declines to Post-Election Low Amid Broader Risk-Off Positioning
Highlights
• Bitcoin plunged to its lowest price since U.S. President Donald Trump’s election win, erasing much of the post-election rally.
• Crypto markets are under pressure as leveraged positions are liquidated and safe-haven flows re-emerge.
• Macro uncertainty, tightening financial conditions, and waning speculative demand have compounded the downturn.
Market Sell-Off and Price Action
Bitcoin experienced a significant sell-off, falling below $74,000, its lowest level since the November 2024 U.S. presidential election that returned Donald Trump to office. The drop marked a clear erosion of the substantial gains Bitcoin made following the initial post-election optimism and crypto-friendly narratives, which had previously supported price rallies throughout 2025.
The cryptocurrency extended its multi-month slide, briefly touching lows around $72,877 before modestly recovering. This sell-off is part of a broader risk-off move across financial markets, where heightened macroeconomic and geopolitical uncertainty, combined with a stronger U.S. dollar and shifting monetary expectations, have weighed on high-beta assets such as Bitcoin.
Liquidations also played a notable role: data indicate that more than $620 million in crypto positions were liquidated in a concentrated period, reflecting forced unwinding of leverage amid accelerating declines. Other major digital assets, such as Ethereum, Solana, and XRP, also saw sharp losses, underscoring the breadth of the crypto risk downturn.
Macro Drivers and Risk Sentiment
Multiple factors have contributed to the negative momentum in the cryptocurrency market. Persistent geopolitical tensions, concerns about global growth, and tighter financial conditions have pushed capital toward traditional safe havens, pressuring speculative markets. The interplay of tariff uncertainties, monetary policy recalibration, and equity market volatility has dampened investor confidence, undermining appetite for crypto exposure.
A stronger dollar over recent sessions has further pressured dollar-priced commodities and digital assets, making Bitcoin relatively less attractive to foreign investors. These cross-asset dynamics illustrate how macroeconomic backdrops continue to shape crypto performance, especially during periods of risk aversion.
Analyst View
Analysts view the latest drawdown as a macroeconomic repricing event rather than a structural loss of faith in Bitcoin’s long-term potential. While short-term volatility may remain elevated amid ongoing risk-off sentiment, foundational drivers such as institutional participation and broader adoption trends are expected to temper the downturn over time. Monitoring shifts in monetary policy, currency strength, and risk sentiment will be critical to assessing Bitcoin’s path forward.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media, such as images or music, used on this platform are either owned by Kapitales Research, obtained through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au