Despite a year of deregulation in the United States, the value of major cryptocurrencies significantly dropped in the first year of President Trump's administration.
The long-awaited turnaround for cryptocurrencies resulted in greater losses than profits for investors. The biggest beneficiary of further integration with traditional finance was President Trump himself.
Rising expectations for cryptocurrencies in Washington
The cryptocurrency community had high hopes for Trump’s return to the White House in January 2025.
He called himself the 'Bitcoin President' during his campaign and promised to make the U.S. the center of global cryptocurrency. Such statements have heightened optimism in the industry, and further expectations were bolstered when Mr. Trump issued his own meme coin just before taking office.
He has implemented such commitments to a certain extent.
He almost immediately appointed a cryptocurrency officer and installed a cryptocurrency-friendly chairman at the Securities and Exchange Commission (SEC). He also signed the federal law 'Genius Act,' which regulated part of the industry for the first time.
In the first place, the initial expectations of the industry were modest.
Previously, criticism of the SEC's 'enforced regulation' led by Chairman Gensler had continued for years, and many industry stakeholders had become receptive to almost any direction change.
Mr. Trump's clear support for cryptocurrencies has also been consistent. This week, he reaffirmed his support at the World Economic Forum held in Davos, mentioning the expected passage of the 'Clarity Act.'
On the other hand, while emphasizing the achievements of the Trump administration, the cryptocurrency market continued to decline, and prices kept showing low levels.
Regulatory progress but cryptocurrency prices are falling
When BeInCrypto examined the price trends of major cryptocurrencies, it found that all major assets had negative returns over the past year. At the time of writing, Bitcoin had fallen 13.4% since January, and Ethereum had also decreased by nearly 9%.
The decline rate of altcoins was even greater than this.
Ripple's XRP has fallen 39%. Solana's SOL has decreased by about 50%. Cardano's ADA has dropped 63%.
These figures suggest that despite regulatory advancements in the cryptocurrency industry by 2025, broad factors still weigh heavily on overall market trends.
Similar to the stock market, Mr. Trump's tariffs have significantly influenced expectations for stable growth. While structural progress has been observed, cryptocurrencies remain a speculative asset class. During times of heightened uncertainty, they tend to be one of the first markets to be hit.
After Mr. Trump announced the 'Liberation Day Tariff' in April last year, Bitcoin fell to $76,300, marking its lowest point since November 2024. Furthermore, on October 10, when a 100% retaliatory tariff against China was announced, Bitcoin plummeted by 8-10% in a single day, leading to billions of dollars in liquidations across the cryptocurrency market.
Tariffs were not the only cause of this price movement.
Repeated challenges to the independence of the Federal Reserve and rising geopolitical tensions have also intensified market fluctuations.
It remains unclear whether the administration will maintain its current course. If it continues this way, some cryptocurrency investors may start to reconsider the balance between regulatory support and macroeconomic risks.
Still, not all cryptocurrencies have fallen.
Mr. Trump and his family have particularly benefited from the expansion of this sector.
Profits from presidential stocks amid a market-wide decline
Mr. Trump's investment portfolio has diversified over the past year, particularly with an increased focus on cryptocurrency-related businesses.
These efforts range from a meme coin bearing his name to the decentralized finance platform World Liberty Financial. The family is also launching projects jointly or individually.
As the valuation of cryptocurrencies declines, Mr. Trump's personal wealth has conversely increased.
According to the latest Bloomberg analysis, the Trump family has earned about $1.4 billion in cryptocurrency-related activities. Currently, digital assets account for over 20% of the family's total wealth.
Such businesses are attracting attention.
While pursuing these projects, the administration has been repeatedly questioned about potential conflicts of interest.
As scrutiny continues and investor losses increase, Mr. Trump's substantial wealth from cryptocurrencies stands in stark contrast to many traders who have incurred significant losses over the past year.
