Bitcoin tests $73,000, erasing gains since Trump's election night win

Bitcoin has dipped well below $74,000, deepening its recent plunge and falling to levels last seen before President Donald Trump’s election night victory.

The first and largest cryptocurrency is trading around $73,000 slightly before publication time, where it was in early November 2024.

Trump’s election was seen as a catalyzing event for the crypto market at large, given his embrace of the sector on the campaign trail. Although the asset traded sideways in the mid-$80,000s between February and March 2025, Bitcoin surged to an all-time high of $126,080 last Oct. 6, according to The Block’s data. Since then, however, the cryptocurrency has been bleeding value. Other major and minor crypto assets have followed a similar trajectory.

Glassnode Account Manager Sean Rose noted that 44% of the bitcoin supply is "now underwater," given that the token has dropped about 30% in the past month from a recent high of $108,000. This dropped the "supply in profit" to 56% from 78%, an indication that weak hands may continue to sell.

"Top buyers near the ATH are now holding at a loss," Rose said. "Concentrated supply with cost basis near recent highs is being tested. These investors' conviction and patience will be tested in the coming weeks and month."

Over $122 million worth of crypto long positions and $26 million worth of shorts were liquidated in the last hour, according to Coinglass, adding to the $663 million total liquidated in the past day, according to Coinglass.

Bitcoin’s Relative Strength Index — a momentum indicator that measures the speed and magnitude of recent price moves — is now hovering around the oversold level of 30. The last time RSI was this low, near the 2022 bear-market bottom, bitcoin went on to fall roughly another 20%. A comparable move today would imply a drop toward $60,000.

Wider market losses

The recent price decline appears to be multifactorial, including macroeconomic uncertainty amid a looming U.S. government shutdown. The broader equities market also largely tanked on Tuesday, with the tech-heavy Nasdaq Composite dipping 2.2%.

Ethereum is down over 9% to below $2,200, and Solana is down over 7% to below $100. XRP, a favorite among retail traders, is down 6.6% to about $1.52, according to The Block's data. Canton is the biggest loser among the top 25 tokens by market cap, down over 10% to about $0.17.

Crypto-related stocks are faring equally as poorly. Coinbase, a bellwether asset for the industry, is down over 6% while the bitcoin-focused Strategy is down over 8%, according to The Block’s equities tracker. Terawulf has bucked the trend, driven by reports today of AI infrastructure acquisitions.

Tuesday’s market losses come despite a reprieve in crypto ETF markets on Monday, with spot bitcoin ETFs posting $561.9 million in net inflows, reversing two consecutive weeks of selling.

"Despite heavy redemptions from Bitcoin and Ethereum ETFs (totalling roughly $1.5 billion and $327 million respectively from January 26–30), some altcoin-focused products continued to attract inflows," a Bitfinex analyst wrote in a report on Monday. "Solana and XRP-linked ETPs saw net inflows, pointing to a tactical "rotation from large-cap crypto assets into select smaller-cap exposures."

"Derivatives markets amplified recent downsides, particularly in Ether, where a single liquidation reached approximately $220 million. Analysts view this as a necessary flush of leverage that remained in altcoin markets prior to the sell-off," they added.

Hyperliquid’s HYPE, notably, is one of the few top 20 tokens to gain on Tuesday, up about 1.56%.