At a Glance
- Bitcoin has slipped about 15% in the first year of Trump’s presidency, trading near $91,000.
- Ethereum has declined roughly 8% to just under $3,100.
- Altcoins such as XRP and Solana have fallen 40-50%, while smaller tokens have collapsed 70-90%.
- Why it matters: The slump shows that political optimism does not guarantee market gains.
The first year of President Trump’s administration has been a roller-coaster for digital assets. While Bitcoin and Ethereum have experienced moderate losses, the broader market has suffered a steep decline, leaving many investors questioning the promised regulatory clarity and bullish outlook that accompanied the election.
Market Performance
A review of CoinGecko data since January 20, 2025 shows a broad downturn:
| Asset | Year-to-Date % Change | Peak (Year-to-Date) | Current Price |
|---|---|---|---|
| Bitcoin | -15% | Above $126,000 (Oct 2025) | $91,000 |
| Ethereum | -8% | Just under $5,000 (Aug 2025) | $3,100 |
| XRP | -40% | – | ~$2.00 |
| Solana | -50% | – | $129 |
Bitcoin’s decline of about 15% and Ethereum’s 8% drop are modest compared to the 40-50% erosion seen in major altcoins and the 70-90% collapse of smaller assets. Analyst Ted Pillows noted that other large-cap tokens are down 50-60%, mid-cap assets 70-80%, and small-cap and meme coins roughly 90%.
Political Promises vs. Market Reality
When Trump took office in November 2024, many supporters celebrated what they called a “crypto president.” The administration’s early actions-appointing SEC Chair Paul Atkins and other pro-crypto officials-were expected to usher in regulatory clarity. Bybit analysts had projected a transformative period for altcoins and DeFi.
However, the market’s performance tells a different story. The losses have forced the industry to reassess expectations. “The damage extends far beyond large-cap tokens,” Pillows said, underscoring that the downturn is systemic.
Geopolitical Impact
Trade policies have played a significant role in the market’s volatility. President Trump’s repeated threats of tariffs on China and the European Union have stalled Bitcoin’s bullish momentum. A single day of liquidations totaled roughly $871 million after the confirmation of new tariffs on several European nations.
This pattern illustrates how macro-economic events can override political signals. Ripple CEO Brad Garlinghouse, in a December 2024 interview, acknowledged that the crypto community had embraced Trump, yet the market’s performance indicates that political support is only one factor among many.
Investor Sentiment and Outlook
The steep decline in altcoins has eroded investor confidence. While Bitcoin and Ethereum remain the most resilient, the broader market’s correction signals caution for those looking to diversify. Analysts suggest that regulatory clarity alone may not be sufficient to restore confidence.
Investors are now looking for signals that the administration will follow through on its promises. Until then, the market may remain in a state of flux, with volatility driven by both political and geopolitical developments.
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Note: All figures are based on CoinGecko data as of the time of writing.
