Bitcoin Crashes Below $67K, Erasing All Gains Since Trump's Election Win

Core Insights - The price of Bitcoin has dropped below $67,000, marking a 23% decline over the past week, with Ethereum and Solana experiencing even greater losses of nearly 33% and 30% respectively [1][2]. Market Sentiment - The cryptocurrency market is facing significant negative sentiment, influenced by broader market trends as tech stocks, particularly in the Nasdaq and S&P 500, also declined [2][3]. - Research analyst Carlos Guzman noted that the current downturn in crypto appears to be correlated with a reduction in investor exposure to risk assets, particularly those associated with artificial intelligence [2][3]. Regulatory Environment - Despite a more collaborative regulatory approach towards the crypto industry during Trump's second term, recent regulatory developments, including stablecoin regulation and market structure bills, have not positively impacted market sentiment [3]. Market Dynamics - The crypto market has experienced a record $19 billion in liquidations, with scrutiny directed towards Binance amid concerns of a software glitch causing an auto-deleveraging event [4]. - The nomination of Kevin Warsh as the next chair of the Federal Reserve has contributed to the selloff in cryptocurrencies, as it raises expectations for tighter monetary policy [5].