Bitcoin sees sharp decline following warning from US Central Bank official
Bitcoin's growth has been cut short after comments from a key US bank caused the leading cryptocurrency to experience a sharp decline in value over the last 24 hours, with potentially more to come in the future.
While cryptocurrency as a whole has grown significantly over the last decade and beyond, Bitcoin certainly leads the charge among the various forms of alternative currency, sitting comfortably ahead when it comes to value and significance.
It was considered to be a key factor within Donald Trump's successful presidential campaign in 2024 and was paramount to the spike in value towards the end of that year and the start of 2025, taking it well beyond the fabled $100,000 mark.
The currency experienced its peak in July 2025, reaching a maximum per-coin value of $124,752, yet it has fallen considerably since then, nearly halving in value after investors lose confidence.
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Many of these drops come directly as a result of policy from the Trump administration that both directly and indirectly impacts the crypto coin, and one bank's worrying prediction has prompted Bitcoin to drop below $70,000 once again with the worst seemingly yet to occur.
As reported by Forbes, key figures from major Wall Street bank Citi have warned against the future of Bitcoin, arguing that it won't meet previous expectations thanks to the decreased likelihood that Trump passes a key bill.
This combines with the ongoing war in Iran, as while crypto enthusiasts were keen to increase the value of Bitcoin following reports of the conflict's close conclusion, that hope has been shattered upon the realization that it's far from over, bringing certain inflation and even the potential for economic collapse alongside it.
Dwindling confidence also surrounds the possibility of the CLARITY Act being signed before the year ends, and Citi strategist Alex Saunders has lowered the coin's price target in response to this, as per a note seen by Reuters.
"Regulatory catalysts will drive further adoption and flows but the window of opportunity for U.S. legislation this year is narrowing," Saunders illustrated, noting that the bank's target has been lowered from a record-breaking $143,000 to 'just' $112,000.
The CLARITY Act aims to establish a regulatory framework for cryptocurrencies, breaking the traditionially unregulated nature of the alternative economy and effectively cementing it as a major economic tool with regulatory oversight.
This would almost definitely increase the value of cryptocurrencies across the board, but Bitcoin once again would be the biggest recipient so the decreased chances of this coming into place are bound to affect the leading coin.