Bitcoin prices have fallen to a 15-month low, despite US President Donald Trump's public support for the cryptocurrency industry.
At the time of writing, Bitcoin was trading at $64,232, down 0.08% since it opened early Friday in Asian trading.
That's a far cry from its all-time high of $122,200 in October.
The drop comes after a long period of price gains, fueled by investor confidence in Trump's pro-crypto policies.
Upon Trump's return to the White House in January 2025, he quickly announced his intention to make the United States the 'crypto capital of the world' and to relax regulations on the industry.
However, political support has failed to curb market pressure.
Deutsche Bank analysts said Bitcoin's latest decline was triggered by the nomination of Kevin Warsh as Fed Chairman, who is expected to adopt a tighter approach to interest rates.
Persistently high interest rates tend to reduce investor interest in risky assets such as crypto.
According to the bank, Bitcoin prices have been trending downward for the past four months, with investor sentiment increasingly negative.
The continued sell-off signals that traditional investors are starting to shy away, raising concerns about the future of the crypto market.
However, Deutsche Bank does not expect crypto to disappear completely.
On the contrary, Bitcoin is now seen as moving from a speculative asset to one that needs to find a real role in the global financial system.
This pressure is also being felt by other cryptocurrencies. Ethereum and Solana have each recorded a fall of around 37% over the course of 2026.
CoinGecko data shows that the crypto market has lost more than $1 trillion in value in a month, and almost $2 trillion since its peak in October.
Investment firm Stifel has warned that Bitcoin prices could fall as low as $38,000, as crypto is now moving more in line with the US dollar.
