Bitcoin, once riding high on a wave of enthusiasm following President Donald Trump’s re-election and pro-crypto agenda, has taken a sharp nosedive — plunging over 10% since his announcement of sweeping global tariffs last week. The digital currency fell below $78,000 on Sunday night, far from its all-time high of nearly $110,000 reached during Trump’s second inauguration in January.
While the crypto community once hailed Trump as “the first bitcoin president,” the honeymoon appears to be fading fast. The sudden decline in bitcoin’s value underscores its vulnerability to broader market forces, despite its reputation as a secure long-term asset. For many investors, bitcoin behaves more like a speculative tech stock—one to sell when turbulence hits.
“Crypto is weird, but it’s mostly correlated to optimism & risk appetite,” wrote Haseeb Qureshi, a crypto-focused venture capitalist, in a post on social media Sunday.
“That optimism is crumbling under Trump’s silence,” he wrote.
Since returning to office, Trump has delivered on several of his promises to the digital asset industry. He appointed regulatory officials who are friendly toward crypto and even issued an executive order calling for the development of a federal bitcoin reserve. On top of that, he’s actively participated in the space, launching his own memecoin targeted at supporters.
Yet, as tariffs begin to ripple through the global economy, the fallout has reached digital assets as well. Investors who once cheered Trump’s crypto embrace are now reconsidering as markets sink and enthusiasm wanes.
Trump’s strong alignment with the cryptocurrency industry had initially ignited hopes that the U.S. would become a global hub for digital assets. However, the unforeseen consequences of his trade policies are now casting a shadow over that vision.