Donald Trump oversaw the largest cryptocurrency meltdown in history less than a year after promising to be the first “crypto president.”
Since he assumed office on January 20, the market has lost almost $1.3 trillion, the worst decline in 11 weeks since the launch of bitcoin in 2009.
The most recent sell-off coincides with more widespread market turbulence brought on by Trump’s “Liberation Day” trade tariffs, which were announced last week and have sparked concerns of a worldwide recession.
On the day of his inauguration, however, bitcoin’s price started to decline, falling from a record high of $109,000 in late January to less than $75,000 on Monday.
With Trump’s pledge to implement pro-crypto legislation once in the White House driving the ensuing price surge, the top cryptocurrency in the world is now back to where it was when he won the US presidential election in November.
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The Republican contender stated at the Bitcoin 2024 Conference in Nashville in July that he would establish a bitcoin treasury, defend the cryptocurrency sector from “Elizabeth Warren and her goons,” and make sure that “all the remaining bitcoin [is] made in the USA.”
However, Trump’s initiatives since taking office have only hurt the price of bitcoin and the cryptocurrency market as a whole. However, Trump’s initiatives since taking office have only hurt the price of bitcoin and the cryptocurrency market as a whole. Some even saw his March executive order, which he issued before to the inaugural White House Crypto Summit, to create a Strategic Bitcoin Reserve as “subpar.”
Since no fresh bitcoin was bought, investors viewed the move as “a trick,” according to Agne Linge, head of growth at digital bank WeFi, who spoke to The Independent.
Over the past 11 weeks, Dogecoin, the original meme coin, has lost more than two-thirds of its value, making it one of the worst losers since Trump took office.
The price of several well-known cryptocurrencies has plummeted by almost 50%, including Cardano, Ethereum, and Solana.
Some observers believe that because of the impact of traditional financial markets, the most recent decline, which was brought on by Trump’s newly announced tariffs, may be the start of a longer-term downward trend.
Alarcon and other industry professionals cited bitcoin’s value as a long-term store of value despite its abrupt decline in value.
Due to its limited quantity—there will only ever be 21 million bitcoins—it is sometimes compared to other assets with restricted availability, such as gold, which is now trading close to record highs.
The future of bitcoin will not be dictated by the economic policies of a single individual, according to Seamus Rocca, executive director at Xapo Bank, who told The Independent that although the price movement of bitcoin today does not resemble traditional hedges like gold, that does not negate its potential.
