The cryptocurrency market has experienced a dramatic $2 trillion loss in value, erasing gains made during Donald Trump's presidency, which initially promised a friendlier regulatory environment. The market, which peaked at $4.379 trillion in October 2025, has now fallen to approximately $2.37 trillion. This decline follows a series of regulatory changes and market dynamics, including a significant sell-off triggered by Trump's unexpected announcement of a 100% tariff on Chinese goods.
Under Trump's administration, several pro-crypto measures were introduced, such as the creation of a cryptocurrency working group and the passage of the GENIUS Act, which established a federal framework for stablecoins. Despite these efforts, the market's volatility was exacerbated by leveraged trading and macroeconomic factors, including the nomination of Kevin Warsh as Federal Reserve Chair, perceived as hawkish by investors.
The boom phase benefited exchanges and stablecoin issuers, while the bust has hit companies with significant crypto holdings hard. Strategy, a major corporate Bitcoin holder, saw its stock plummet as Bitcoin's price fell, highlighting the risks of leverage and macroeconomic sensitivity in the crypto market.
Crypto Market Loses $2 Trillion Amid Trump's Pro-Crypto Policies
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