Bitcoin has hit a one-month low - in defiance of Trump's rhetoric. What's going on?

Bitcoin fell below $73 thousand at one point, despite US President Donald Trump's statements of support for the CLARITY Act, a bill designed to establish clearer rules for the crypto market in the US, Bloomberg writes. This indicates that the favorable rhetoric of the US President for cryptocurrencies is losing its ability to stimulate their growth. Despite Trump's attempts to "raise the price of one of his personally favorite assets," this market is becoming increasingly difficult to influence in this way, says Matt Maley, chief market strategist at Miller Tabak.

Despite Trump's publication of a post on Truth Social on May 28, in which he called the U.S. "the crypto capital of the world" and declared his support for the CLARITY Act, bitcoin fell more than 3% - at its low, it was down to $72.47 thousand - the last time the cryptocurrency was traded at this level was in mid-April. Bitcoin has fallen 16% since the beginning of the year.

Regulatory optimism, which previously spurred active buying by cryptocurrency market participants, is now facing profit taking, slowing inflows into ETFs and general market fatigue, Bloomberg explains. The industry is trying to regain lost momentum amid declining retail investor activity, shrinking leverage and growing uncertainty about whether legislative victories will lead to meaningful capital inflows in the short term, the agency notes.

Bitcoin's continued weakness underscores how much betting on cryptocurrency growth under Trump through his crypto market-loyal rhetoric has already been built into the value of digital assets after a significant rally early last year, Bloomberg notes. This makes the market increasingly vulnerable to the internal negatives of the crypto industry itself, even as the stock market continues to rise on the back of solid corporate earnings, Bloomberg notes.

"Investors seem to be giving up. The president appears to be trying to push up one of his favorite personal assets with verbal interventions, but it's harder to make an impact this time around as his trend has remained downward since last October," noted Miller Tabak + Co. chief market strategist. Matt Maley.

"Sentiment in the crypto market as a whole has deteriorated since October 2025 (when bitcoin rose above $125k) and is currently operating in a low liquidity environment in the absence of new catalysts," Barron's quoted Paul Howard, senior director at crypto-trading firm Wincent, as saying. According to him, in such circumstances, geopolitical events are becoming overly influential in shaping market participants' positions in favor of or away from risk.

Capital inflows and outflows in spot bitcoin ETFs, which serve as a barometer of institutional and retail investors' attitudes toward the market, have seen large-scale net outflows in recent days. BlackRock's iShares Bitcoin Trust (IBIT), the largest U.S.-traded instrument in the group, saw outflows of more than $520 million in the most recent session for which data is available, according to data compiled by Bloomberg, the largest single-day withdrawal since January and one of the largest on record. A total of $1.2 billion was withdrawn from the bitcoin-ETF over the past week.

This article was AI-translated and verified by a human editor