Bitcoin Falls 20% in Three Months Amid Macro Pressures

Abu Dhabi, UAE – January 30 , 2026:

After briefly surging to new record highs following Donald Trump’s return to the White House, bitcoin has seen its momentum stall, falling nearly 20% over the past three months. Early optimism tied to expectations of lighter regulation and a more supportive stance on cryptocurrency has yet to translate into sustained gains, underscoring that favorable political rhetoric alone cannot drive the market.

Market behavior shows that bitcoin is increasingly functioning as a high-liquidity risk asset, reacting primarily to dollar liquidity, interest-rate expectations, and broader risk sentiment rather than political developments. Investors have found limited incentive to rotate into bitcoin, particularly as gold and silver have absorbed much of the safe-haven demand and delivered strong returns over the past year—offering “bitcoin-like” performance that has left digital assets trailing.

“Supportive crypto policy may provide marginal benefits, but it cannot override macroeconomic forces or instantly revive prices,” said Sam North, Market Analyst at eToro. “Even though Trump continues to speak positively about cryptocurrency, his attention remains largely focused on geopolitics and broader economic priorities. Markets cannot rely on political headlines alone to drive prices higher.”

Despite the recent pullback, the long-term fundamentals for bitcoin remain solid. Institutional participation and structural demand continue to support its case, though any benefits from a friendlier regulatory environment are likely to emerge gradually rather than as an immediate boost to valuations.