Bitcoin has erased all gains since Donald Trump's 2024 election victory, according to Citi's analysis. The cryptocurrency recently dipped below $72,000, a level last seen in late 2024. The drop represents a 42% decline from its all-time high of $126,000, signaling a clear bear market for the digital asset.

Citi analysts point to long liquidations and sensitivity to economic and geopolitical risks as contributing factors to the Bitcoin downturn. They also highlight a slowdown in inflows to U.S. spot ETFs, a significant source of demand. The firm believes Bitcoin is approaching key levels near the pre-election price, with potential support from regulatory developments.

Analysts at Citi believe that the current decline doesn't signal anything more than a standard market cycle. Some experts suggest the recent move reflects a broader macro reset. Market volatility, coupled with uncertainty, and forced de-leveraging events are also contributing to the recent price action.

What happens next? Positive news on the regulatory front, like the advancement of Senate bills, could act as catalysts, boosting investor sentiment. Investors will be watching key levels. It is important to note that the crypto market is known for its volatility, so investors should consider this when making decisions.