Bitcoin (BTC) has completely wiped out the massive gains it achieved following Donald Trump's election victory in November 2024, returning to pre-election price levels in a stunning market reversal. According to a recent update from crypto analyst Bull Theory, BTC surged an impressive 78% after Trump became president, driven by optimistic sentiment around pro-crypto policies and regulatory easing. However, as of February 5, 2026, the cryptocurrency has erased all those gains, trading back at levels seen in November 2024. This development raises critical questions for traders about market volatility, potential support zones, and future trading opportunities in the crypto space.

Analyzing Bitcoin's Post-Election Price Trajectory and Current Market Dynamics

The post-election pump in Bitcoin was fueled by expectations of a more favorable regulatory environment under the Trump administration, with investors betting on reduced oversight and increased institutional adoption. From election day in November 2024, BTC climbed from around $70,000 to peaks near $100,000 or higher, marking a 78% increase as highlighted by Bull Theory. This rally was supported by high trading volumes on major exchanges, with daily volumes exceeding $50 billion at times, and on-chain metrics showing increased whale accumulation. However, recent market pressures, including macroeconomic uncertainties, interest rate concerns, and profit-taking, have led to a sharp correction. As of the latest data, Bitcoin is hovering around $70,000, effectively nullifying the entire post-Trump surge. Traders should watch key support levels at $68,000, which aligns with the 200-day moving average, and resistance at $75,000, where previous highs could act as barriers to any recovery attempts.

In terms of trading strategies, this erasure of gains presents both risks and opportunities. Short-term traders might consider bearish positions if BTC fails to hold the $68,000 support, potentially targeting downside moves to $60,000 based on Fibonacci retracement levels from the election rally. Conversely, long-term holders could view this as a buying opportunity, especially if on-chain data like the Puell Multiple or MVRV ratio indicates undervaluation. Trading volumes have dipped recently, with 24-hour volumes around $30 billion, suggesting reduced liquidity that could amplify price swings. For those diversifying, correlations with stock markets are noteworthy—Bitcoin's movement often mirrors tech-heavy indices like the Nasdaq, which has also faced volatility amid economic data releases. Institutional flows, such as those from ETF providers, remain a key indicator; recent inflows have slowed, contributing to the downward pressure.

Broader Implications for Crypto Trading and Stock Market Correlations

Looking beyond Bitcoin, this market reset impacts the broader cryptocurrency ecosystem, including altcoins like Ethereum (ETH) and Solana (SOL), which have seen similar corrections. ETH, for instance, has dropped back to levels around $2,500, erasing much of its post-election enthusiasm tied to potential DeFi growth under new policies. Traders should monitor cross-market correlations, as Bitcoin's performance often influences stock market sentiment, particularly in AI and tech sectors. For example, if Bitcoin stabilizes, it could signal renewed risk appetite, benefiting stocks like those in the Magnificent Seven, which have shown positive correlations with crypto during bull runs. On-chain metrics, such as network hash rate remaining robust above 600 EH/s, suggest underlying strength despite price weakness, pointing to potential accumulation phases.

From a trading perspective, incorporating technical indicators like RSI and MACD can help identify entry points. Currently, BTC's RSI is approaching oversold territory at 40, hinting at a possible bounce. However, external factors like upcoming economic reports or regulatory announcements could sway the market. For stock traders eyeing crypto correlations, opportunities arise in hedging strategies—pairing BTC longs with short positions in volatility-sensitive stocks. Overall, this event underscores the importance of risk management in volatile markets, with stop-loss orders essential around key levels. As Bitcoin resets to November 2024 prices, savvy traders can capitalize on this dip by focusing on data-driven decisions, blending fundamental analysis with technical setups for optimal outcomes.

In summary, Bitcoin's erasure of post-Trump gains highlights the crypto market's sensitivity to sentiment shifts, offering lessons in patience and strategy. With no immediate catalysts on the horizon, monitoring real-time indicators and maintaining diversified portfolios will be crucial for navigating this phase. This analysis, based on verified market observations as of February 2026, emphasizes concrete trading data to guide informed decisions.