Trump’s Crypto Boom and Bust: A $2 Trillion Rollercoaster
By John Nada·Feb 7, 2026·3 min read
The crypto market has seen a dramatic $2 trillion swing during Trump's presidency, from a high of $4.379 trillion to about $2.37 trillion now. Investors face a complex interplay of factors affecting their decisions and market recovery.
The crypto market, which soared on Donald Trump’s campaign promise of a pro-crypto environment, has now returned to its starting point after a dramatic $2 trillion swing. According to CryptoSlate, the total crypto market value reached about $2.4 trillion in October 2024, surged to nearly $3.2 trillion by November, and peaked at $4.379 trillion in early October 2025. However, as of now, the market cap has plummeted to approximately $2.37 trillion following a steep selloff.
Bitcoin, the leading cryptocurrency, briefly dipped to around $60,000 before recovering to about $65,894. Meanwhile, Ethereum traded near $1,921 after a drop to approximately $1,752 earlier this week. The market's decline has been attributed to various factors, including investor behavior and broader economic influences.
After taking office, Trump’s administration attempted to create a friendlier regulatory environment for cryptocurrencies. In January 2025, Trump initiated the formation of a cryptocurrency working group to draft regulations and evaluate a potential national digital asset stockpile. Notable changes included rescinding guidance that raised costs for custodying customer crypto assets and allowing national banks to provide crypto-asset custody. These moves underpinned a bullish sentiment in the market, driving significant investments into Bitcoin and other digital assets.
However, the recent downturn has shed about $2 trillion from the market, with over $1 trillion lost in just the past month. Analysts like Matt Hougan suggest this decline results from a complex interplay of market dynamics rather than a single event. Many long-term investors have opted to sell early, anticipating a cyclical downturn, which is common in crypto markets. This behavior has contributed to a broader risk-off sentiment that has affected Bitcoin and other assets.
A key moment in this selloff was triggered by Trump’s surprise announcement of a significant tariff on Chinese goods, which coincided with a period when many traditional markets were closed. This unexpected news led to a market-wide selloff that the crypto sector has struggled to recover from. Additionally, concerns about rising interest rates and macroeconomic policies have further complicated the landscape for Bitcoin.
The crypto boom had favored entities that benefit from increased trading volumes, such as exchanges and derivatives venues. In 2025, centralized exchanges processed $86.2 trillion in perpetual futures volume, while decentralized perpetuals accounted for $6.7 trillion. Despite the downturn, stablecoin issuers are positioned to continue growing, as traders still require dollar-denominated assets for transactions amid volatility.
In the face of this turmoil, the crypto market's ability to rebound will depend on how quickly it can navigate these challenges and regain investor confidence. While the Trump administration's regulatory efforts initially fostered growth, the current economic climate poses significant hurdles. The ongoing evolution of the market will be crucial for its future viability and stability.