Crypto’s Trump Nightmare: Tariffs Spark Massive Market Crash

New York

In a shocking twist, cryptocurrencies have erased nearly all their gains since Donald Trump’s election victory, plunging deep into the red as the fallout from his escalating tariff wars wreaks havoc on global markets. Bitcoin briefly fell below $75,000 on Monday for the first time since November 7, 2024, marking a steep drop of 5.3%. Meanwhile, altcoins like XRP, Solana, and Cardano are all deep in the red, with losses ranging from 5% to 10%.

The crypto market’s total capitalization slumped by 11%, settling at $2.5 trillion — right back to where it stood the day Trump won the presidency. This sharp decline came as Trump doubled down on his tariffs, already causing a bloodbath in global equities, while hopes that crypto could weather the storm better than traditional assets were dashed.

The cryptocurrency industry, once one of Trump’s most enthusiastic supporters, is now feeling betrayed. The industry’s major backers had poured millions into his campaign, expecting a prosperous future under his second term. Instead, they’ve found themselves caught in the crossfire of an unpredictable trade war.

“Crypto came into 2025 expecting a Trump tailwind and got a Category 5 storm instead,” said Matthew Graham, CEO of Ryze Labs. “We expected the tailwind, and in return, he stiffed us.”

Market data shows $1.2 billion worth of bullish crypto bets were liquidated in the past 24 hours, the highest since December. Options markets are flashing warning signs, with demand for downside protection surging, as traders brace for further selling pressure.

The massive selloff highlights the continuing, almost unnerving, correlation between crypto and traditional risk assets. Despite early resistance, it appears the crypto market remains tethered to the same forces pulling down stocks and other high-risk assets. “Crypto is typically a leading indicator for risk assets,” said Julia Zhou, COO at Caladan.

As digital assets ride the tumultuous wave of global instability, it’s clear that the crypto dream under Trump has turned into a bitter reality.