This article first appeared on GuruFocus.
Bitcoin’s (BTC-USD) latest drop is flashing a warning sign for crypto investors: even friendly political headlines may not be enough to revive momentum. The token briefly fell below $73,000 on Thursday, sliding as much as 3.6% to a six-week low of $72,474, despite President Donald Trump using a late-Wednesday Truth Social post to call the US the crypto capital of the world and renew his support for the CLARITY Act. That reaction suggests Washington’s pro-crypto push could be losing some of its power as a market catalyst.
The weakness is coming as regulatory optimism runs into profit-taking, softer ETF flows, fading retail participation and leverage unwinds. Bitcoin’s rally tied to Trump’s crypto-friendly stance may have already priced in much of the good news, leaving digital assets more exposed to internal market pressure while equities continue drawing support from resilient earnings and optimism around the US economy. Glassnode analysts, including Chris Beamish, said conviction remains limited and highlighted roughly $78,000 as the average cost basis for Bitcoin holders who bought within the past 155 days, a group that could be more sensitive to further price declines. Bitcoin has now fallen well below that level.
The ETF data is adding another layer of pressure. BlackRock’s IBIT recorded more than $520 million in outflows in the latest available session, its biggest one-day withdrawal since January and one of the largest on record, while overall Bitcoin ETFs saw $1.2 billion in outflows over the past week. That weakness is unfolding even as the industry receives positive headlines, including efforts by the US Commodity Futures Trading Commission and Gemini Trust Co. to dissolve a settlement tied to a $5 million payment. Matt Maley of Miller Tabak + Co. said it seems investors are throwing in the towel, while noting that Trump’s attempt to support one of his favored assets may be running into a trend that has been lower since last October.
