The cryptocurrency market experienced significant turmoil in 2025, losing $2.6 trillion in value due to tariff policies implemented by Trump and broader macroeconomic challenges. The first major downturn occurred in the first quarter, with the market capitalization plummeting from $3.6 trillion to $2.42 trillion by April 9. Although a temporary halt in tariffs led to a brief market recovery, renewed concerns and substantial sell-offs by long-term investors caused another decline, bringing the market cap down to $2.89 trillion by November 22. Investor sentiment was notably affected, as reflected in the fear and greed index, which indicated increased anxiety. Contributing factors included rising U.S. inflation, higher unemployment rates, and the unwinding of the Yen carry trade, all of which compounded the market's instability.