Why is Crypto Down After Trump’s Election?
Why is crypto down? Despite hopes for a crypto boom post-Trump election, the market is
struggling with bitcoin down, along with others. Here’s why crypto prices are crashing, leaving investors scratching
their heads.
When Donald Trump secured a second term, crypto enthusiasts were
rubbing their hands together, expecting a boom. After all, the promise of
pro-crypto policies, tax cuts, and less regulation made many think this was the
moment. Bitcoin, Ethereum, and other cryptocurrencies were expected to soar in
value under an administration that seemed to love big business—and crypto
definitely fits that bill. The market, fueled by optimism, was anticipating an
altcoin frenzy like no other.
Screenshot (https://coinmarketcap.com/)
🚨JUST IN : Total #crypto market cap is down 6.6% today to $3.56T 🔴
What are you buying in this dip?
— Sumit Kapoor (@moneygurusumit) January 27, 2025
But, as the inauguration passed and Trump’s speech made no mention of
crypto or blockchain, reality hit hard. Investors who’d expected regulatory
relief, or at least some form of support for the crypto sector, were left with
nothing. So, naturally, the market did what markets do when expectations aren’t
met: it tumbled.
Trump’s Silence: The Final Nail in the Coffin
Crypto investors had been riding high on the thought that Trump’s
second term would bring favorable treatment to their beloved assets. However,
when his inaugural speech didn’t even reference crypto, the hopes of many were
dashed. Without clear signals from the new president about supporting digital
currencies or even taking a stance, the crypto market dropped like a stone.
The lack of any significant crypto-friendly initiatives or plans was
like a punch in the gut to traders who had poured money into the market in
anticipation of a boom. What followed was predictable: widespread sell-offs,
and the market’s momentum was lost. Instead of a surge, there was a sinking
feeling as major cryptocurrencies , including Bitcoin, suffered steep declines.
The Market’s Resilience Test
Bitcoin’s value has, at the time of writing, fallen to fallen to around
$100,000, a substantial drop from its previous highs, and there are now
questions about its resilience. The market’s ability to recover, particularly
after the disillusionment brought on by Trump’s silence, is now under a
microscope. If crypto was supposed to be the next big thing, this sudden dip
shows just how volatile and unpredictable it can be.
WHY ARE BITCOIN AND CRYPTO
DUMPING?IN THE PAST FEW HOURS, BTC IS
DOWN OVER 5%, WHILE LARGE
CAPS ARE DOWN 8%-10%THIS HAS NOTHING TO DO WITH THE
CRYPTO MARKET AND EVERYTHING
TO DO WITH THE US STOCK MARKET.THE US STOCK MARKET IS DUMPING
TODAY, AND IT’S JUST BECAUSE OF… pic.twitter.com/F0TyCgDMro— Ash Crypto (@Ashcryptoreal) January 27, 2025
For those in the crypto market, the current situation might feel like a
test of patience. Can crypto bounce back without the support of favorable
policies? Or is it doomed to ride a rollercoaster that never reaches its peak?
Meme Coins and the Trump Effect
Adding fuel to the fire, the meme coins TRUMP and MELANIA that had
gained popularity tied to the Trump’s branding also saw their values fall
despite the TRUMP coin soaring
when the President first took office.
Screenshot (https://coinmarketcap.com/)
It’s almost like the entire crypto
ecosystem has caught a cold, and meme coins—known for their erratic rises and
falls—are no exception. Investors who believed these coins would thrive under
Trump’s leadership found themselves staring at massive losses instead of gains.
If meme coins are the way, maybe I’ll issue one. With a twist. Same terms as $TRUMP . 20% float. Same release schedule. One difference.
All the revenue from the sale of the coins go to the US Treasury. The wallet address will be published so everyone can track it.
If…
— Mark Cuban (@mcuban) January 20, 2025
The meme coin market’s volatility is nothing new, but it highlights
just how fickle the crypto market can be when it’s riding on promises that
never materialize. For now, it’s clear that speculation based on unfulfilled
expectations isn’t enough to keep the market afloat.
Reality Bites
As Trump steps into his second term, the crypto market faces a harsh
reality: hope doesn’t always translate to profits. The lack of pro-crypto
action from the new administration has left investors wondering whether the
crypto market can survive on its own. While crypto remains as volatile as ever,
the road ahead might be rockier than expected. Investors will need more than
just hope to get through this slump; they need policies, not promises.
For more Fintech news, visit our dedicated archives.
Why is crypto down? Despite hopes for a crypto boom post-Trump election, the market is
struggling with bitcoin down, along with others. Here’s why crypto prices are crashing, leaving investors scratching
their heads.
When Donald Trump secured a second term, crypto enthusiasts were
rubbing their hands together, expecting a boom. After all, the promise of
pro-crypto policies, tax cuts, and less regulation made many think this was the
moment. Bitcoin, Ethereum, and other cryptocurrencies were expected to soar in
value under an administration that seemed to love big business—and crypto
definitely fits that bill. The market, fueled by optimism, was anticipating an
altcoin frenzy like no other.
Screenshot (https://coinmarketcap.com/)
🚨JUST IN : Total #crypto market cap is down 6.6% today to $3.56T 🔴
What are you buying in this dip?
— Sumit Kapoor (@moneygurusumit) January 27, 2025
But, as the inauguration passed and Trump’s speech made no mention of
crypto or blockchain, reality hit hard. Investors who’d expected regulatory
relief, or at least some form of support for the crypto sector, were left with
nothing. So, naturally, the market did what markets do when expectations aren’t
met: it tumbled.
Trump’s Silence: The Final Nail in the Coffin
Crypto investors had been riding high on the thought that Trump’s
second term would bring favorable treatment to their beloved assets. However,
when his inaugural speech didn’t even reference crypto, the hopes of many were
dashed. Without clear signals from the new president about supporting digital
currencies or even taking a stance, the crypto market dropped like a stone.
The lack of any significant crypto-friendly initiatives or plans was
like a punch in the gut to traders who had poured money into the market in
anticipation of a boom. What followed was predictable: widespread sell-offs,
and the market’s momentum was lost. Instead of a surge, there was a sinking
feeling as major cryptocurrencies , including Bitcoin, suffered steep declines.
The Market’s Resilience Test
Bitcoin’s value has, at the time of writing, fallen to fallen to around
$100,000, a substantial drop from its previous highs, and there are now
questions about its resilience. The market’s ability to recover, particularly
after the disillusionment brought on by Trump’s silence, is now under a
microscope. If crypto was supposed to be the next big thing, this sudden dip
shows just how volatile and unpredictable it can be.
WHY ARE BITCOIN AND CRYPTO
DUMPING?IN THE PAST FEW HOURS, BTC IS
DOWN OVER 5%, WHILE LARGE
CAPS ARE DOWN 8%-10%THIS HAS NOTHING TO DO WITH THE
CRYPTO MARKET AND EVERYTHING
TO DO WITH THE US STOCK MARKET.THE US STOCK MARKET IS DUMPING
TODAY, AND IT’S JUST BECAUSE OF… pic.twitter.com/F0TyCgDMro— Ash Crypto (@Ashcryptoreal) January 27, 2025
For those in the crypto market, the current situation might feel like a
test of patience. Can crypto bounce back without the support of favorable
policies? Or is it doomed to ride a rollercoaster that never reaches its peak?
Meme Coins and the Trump Effect
Adding fuel to the fire, the meme coins TRUMP and MELANIA that had
gained popularity tied to the Trump’s branding also saw their values fall
despite the TRUMP coin soaring
when the President first took office.
Screenshot (https://coinmarketcap.com/)
It’s almost like the entire crypto
ecosystem has caught a cold, and meme coins—known for their erratic rises and
falls—are no exception. Investors who believed these coins would thrive under
Trump’s leadership found themselves staring at massive losses instead of gains.
If meme coins are the way, maybe I’ll issue one. With a twist. Same terms as $TRUMP . 20% float. Same release schedule. One difference.
All the revenue from the sale of the coins go to the US Treasury. The wallet address will be published so everyone can track it.
If…
— Mark Cuban (@mcuban) January 20, 2025
The meme coin market’s volatility is nothing new, but it highlights
just how fickle the crypto market can be when it’s riding on promises that
never materialize. For now, it’s clear that speculation based on unfulfilled
expectations isn’t enough to keep the market afloat.
Reality Bites
As Trump steps into his second term, the crypto market faces a harsh
reality: hope doesn’t always translate to profits. The lack of pro-crypto
action from the new administration has left investors wondering whether the
crypto market can survive on its own. While crypto remains as volatile as ever,
the road ahead might be rockier than expected. Investors will need more than
just hope to get through this slump; they need policies, not promises.
For more Fintech news, visit our dedicated archives.