Bitcoin price today: Why are BTC, Ethereum-ETC rates down after recent highs? Donald Trump whose administration is known as crypto-friendly may be responsible

Bitcoin and Ethereum, which are the most popular cryptocurrencies, prices have gone down after recent trading shows positive recovery by BTC and ETH.

Bitcoin price on Monday was down after positive trading in the last week. Ethereum price has also gone down significantly today. There are several factors that have heavy impact on the Cryptocurrency. Bitcoin was at USD 84,457.30 during the morning trade. BTC fell at 82,828.12, down by 1,621.36 points, 1.92 per cent. Meanwhile, Ethereum was at USD $2,687.59 during the opening trade today. ETH fell to USD 2,662.70.

Bitcoin and Ethereum, which are the most popular cryptocurrencies, prices have gone down after recent trading shows positive recovery by BTC and ETH. Factors such as high U.S Bond yields, strong U.S. Dollar, spike in oil prices are playing pivotal roles. This comes after President Donald Trump has rejected Iran's strategy of reopening of Strait of Hormuz.

Bitcoin rebounds and market sentiment

A few days back Bitcoin bulls were back after months of gloom. After languishing for months at two-year lows of around $60,000, the world's largest cryptocurrency in late August staged a rebound past $70,000 as surging Treasury yields briefly retreated and broader sentiment improved. The rally marked a sharp turnaround for bitcoin, which had slumped roughly 50 per cent from its October 2025 peak of above $126,000.

Although traders are assigning almost no chance of bitcoin rescaling that peak, the bitcoin options market has flipped bullish for the first time in 12 months, according to data from options platform Derive.xyz, with many traders betting bitcoin could hit $80,000 or higher by December.

Macroeconomic headwinds and institutional inflows

However, at first glance, that optimism seems misguided: tensions in the Middle East remain high, the odds of the U.S. Senate passing a key crypto bill that could boost adoption have dimmed, and inflation has remained elevated, raising expectations of a Fed rate hike which usually sucks liquidity out of such risk assets.

Despite those headwinds, many investors believe bitcoin, a notoriously volatile asset, has hit its lowest ebb. With traders assigning an 85% likelihood of a rate hike on Wednesday following hot inflation data, and with long-end bond yields nearing 5%, creating more competition for capital, the question now is whether bitcoin can sustain momentum, said analysts.

Bitcoin exchange-traded funds, which have institutional as well as retail investors, have also shown signs of renewed demand, with inflows reaching nearly $2 billion the week of August 17, after eight straight weeks of outflows in May and June.

Policy developments and regulatory outlook

Under President Donald Trump's crypto-friendly administration, policy surprises offer another potential bitcoin boost. The market has likely priced in that the U.S. Clarity Act, a key crypto bill, will not pass amid delays and continued opposition from many senators, said Can-Luca Köymen, investment strategist at Switzerland-based digital asset bank Sygnum.

The bill would address what the industry says is legal ambiguity by defining which tokens qualify as securities versus commodities, potentially boosting adoption. The U.S. Senate is set to take a procedural vote on the bill on Tuesday, which could ultimately determine its fate.