Bitcoin has dropped sharply this week, hitting its lowest point since late 2024, before staging a modest rebound in Friday trading.

The cryptocurrency briefly dipped just above $60,000 on Thursday, before recovering 3.3% to trade around $64,948 by early Friday morning.

That’s a long way from its peak of $122,200 in October last year, marking a fall of around 47% from its all-time high.

The decline comes despite vocal support from US President Donald Trump, whose administration has rolled out a series of pro-crypto policies.

These include backing cryptocurrency legislation, dissolving enforcement teams, and launching his own digital coin. Trump’s family-linked investment vehicle, World Liberty Financial, has also remained active in the sector.

Analysts believe markets were spooked by Trump’s nomination of Kevin Warsh to head the US Federal Reserve. Warsh is expected to favour higher interest rates, which tends to discourage speculation in riskier assets like crypto.

Other major tokens, such as Ethereum and Solana, have also seen heavy losses. Over $2 trillion has been wiped from the market since the peak in October.

Analysts have warned that Bitcoin could fall below $40,000, pointing to a closer link between crypto valuations and the strength of the US dollar.