Despite a year of regulatory easing in the United States, the entire cryptocurrency market plummeted in value during the first year of the new term of American President Donald Trump. What really happened?
What initially appeared to be a highly anticipated positive turning point for crypto ultimately resulted in more losses than gains for investors. To top it off, the main beneficiary of a deeper integration of crypto into traditional finance seems to have been the American president himself.
Crypto optimism in Washington
The crypto community approached January 2025 with high hopes as Trump prepared to make his return to the White House.
On the campaign trail, he presented himself as a 'Bitcoin president' and committed to making the United States the global capital of crypto. Such statements rekindled optimism in the sector, further heightened when Trump launched his own meme coin just two days before his inauguration. And to some extent, the politician has followed through on these commitments.
Almost immediately, he appointed a 'crypto Tsar' and placed a pro-crypto president at the head of the Securities and Exchange Commission (SEC). He also enacted the Genius Act, which marks the first federal legislation aimed at regulating a segment of the crypto industry.
From the outset, that said, expectations were relatively modest on this point. After years of criticism aimed at the SEC led by Gensler and its 'punching' regulatory approach, many sector players were ready to welcome almost any change in direction.
Trump's expressed support for crypto has remained consistent. This week, during his speech at the World Economic Forum in Davos, he reaffirmed his support and mentioned expectations surrounding the possible adoption of the Clarity Act. Yet, while Trump touted the accomplishments of his administration, the crypto market took another hit, with prices maintaining their downward trend.
Crypto prices are plummeting despite regulatory advances
By analyzing the price performance among the major cryptocurrencies in the sector, BeInCrypto found that all major assets recorded negative returns over the past year. At the time of writing this report, the price of Bitcoin showed a decline of 13.4% since January, while Ethereum had fallen by nearly 9%.
Other altcoins, that said, have shown significantly worse performances. The price of Ripple's XRP has dropped by 39%, Solana's SOL has decreased by about 50%, while Cardano's ADA has fallen by 63%. These figures suggest that, despite the regulatory momentum gained by the crypto industry in 2025, other even more powerful factors continue to weigh on market performance.
As with stock markets, Trump’s tariff policy has significantly affected expectations of stable and sustainable growth. Indeed, despite notable structural progress, crypto remains a predominantly speculative asset class; thus, in times of increased uncertainty, it is generally one of the first markets to absorb the consequences.
Following Trump’s announcement of the 'Liberation Day' tariffs last April, the price of Bitcoin fell to $76,300, its lowest level since November 2024. On October 10, after the administration announced a reciprocal tariff of 100% on China, Bitcoin lost between 8% and 10% in a single session, and the entire crypto market recorded liquidations in the billions of dollars.
Tariffs alone, however, are not enough to explain this volatility. Indeed, other factors, such as recurring challenges to the independence of the Federal Reserve and rising geopolitical tensions, have amplified market swings.
Uncertainty remains regarding the continuation of the course set by the administration. If this were to be the case, some crypto investors could start to reassess their appreciation of the balance between regulatory support and more general macroeconomic risks.
That said, the losses have not been universal. Trump and his family, in particular, have appeared as significant beneficiaries of the expansion of the crypto sector.
Massive presidential profits
Over the past year, Trump’s investment portfolio has significantly diversified, with a notable share directed towards crypto-related initiatives. These initiatives have varied, ranging from a meme coin bearing his name to the decentralized finance platform World Liberty Financial. Family members have also participated by launching projects either jointly or independently.
Thus, while the valuation of cryptocurrencies has fallen, Trump’s personal wealth has evolved in the opposite direction. According to a recent analysis by Bloomberg, the Trump family has generated about $1.4 billion through its crypto-related activities. Currently, digital assets represent more than 20% of the family’s total wealth.
These initiatives, however, have not escaped public attention. The administration has faced recurring questions about potential conflicts of interest, even as Trump pursued these projects.
That said, ultimately, as analyses continue and investor losses accumulate, Trump’s crypto wealth appears in stark contrast to the situation of many traders, whose portfolios have suffered significant losses over the past year.
The moral of the story: One's crypto wealth is another's collapse.
