Bitcoin continues its downward spiral, hitting a new low by going below $66,000. The cryptocurrency’s fall occurred amid one of President Donald Trump’s crypto policy advisors, David Sacks, stepping down.
Sacks’ departure has left uncertainty and volatility over the extent to which strong crypto support from policymakers will continue or not.
Bitcoin is designed with a fixed supply of 21 million coins, making it deflationary and distinct from traditional fiat currencies, which can be printed in unlimited quantities. This scarcity is often cited as a reason for its appeal as a store of value.
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Users can store and transfer Bitcoin using digital wallets, which are protected by private keys. Over the years, Bitcoin has gained popularity as both an investment asset and a medium of exchange in certain online and offline markets. Its value is highly volatile, influenced by market demand, regulatory developments, technological adoption, and macroeconomic conditions.
Who is David Sacks?
David Sacks is the former White House special advisor on cryptocurrency and AI under President Trump. He served in this role from early 2025 until March 2026, when he stepped down after reaching the maximum allowable days for a “special government employee” position. During his tenure, he was often referred to in the media as the Trump administration’s “crypto czar.”
After stepping down, he transitioned to co-chair of the President’s Council of Advisors on Science and Technology (PCAST), where he continues to advise on technology policy.
Sacks is also widely known as a Silicon Valley entrepreneur, he co-founded Craft Ventures, served as COO of PayPal, and founded Yammer, which Microsoft acquired. Outside government, he co-hosts the popular “All In” podcast and is active in investing and tech advocacy.
The recent drop in Bitcoin highlights the ongoing volatility inherent in cryptocurrency markets. Digital assets, by nature, are highly sensitive to changes in investor sentiment, regulatory signals, and public perceptions of political support. Even minor shifts in leadership or advisory roles within influential circles can prompt large swings in market behavior.
READ: UAE firm acquires $500 million stake in Trump’s cryptocurrency company (February 2, 2026)
Unlike traditional financial assets, cryptocurrencies lack centralized regulatory frameworks and are often driven by speculation and expectations about future adoption or policy support. Consequently, investor reactions can be swift and sometimes disproportionate to fundamental changes, reinforcing the cyclical nature of price movements.
At a strategic level, these fluctuations signal the importance of risk management for anyone participating in the crypto space. Diversification, careful monitoring of market signals, and an understanding of external influences, including political or regulatory shifts, are critical for navigating these markets.