Trump’s crypto “golden age” throws away $2 trillion in profits, leaving those holding dollars as winners
The crypto market surged under Trump's pro-crypto stance, adding $2 trillion, but has since retraced that gain, leaving dollar holders as relative winners.Summary
The cryptocurrency market experienced a significant boom, adding nearly $2 trillion in value, driven by expectations following Donald Trump's pro-crypto campaign promises and subsequent regulatory easing. Key actions included the creation of a crypto working group, the rescinding of restrictive guidance like SEC SAB 121, and the passage of the GENIUS Act, which established a federal framework for stablecoins. This environment propelled Bitcoin to over $126,000 and the market cap past $4 trillion by mid-2025.
However, the market has since shed about $2 trillion from its peak due to a confluence of factors described as a mechanical unwind. Analysts point to cyclical selling by long-term investors anticipating a down year, fading retail attention, and stiff competition from assets like AI stocks. A massive $20 billion leveraged liquidation event, triggered partly by Trump's surprise tariff announcement, exacerbated the downturn.
The boom phase rewarded infrastructure like exchanges and stablecoin issuers, while the bust has hurt leveraged entities and retail investors. Public companies that heavily stockpiled Bitcoin, such as Strategy (formerly MicroStrategy), suffered massive balance sheet losses. Ultimately, while Trump's policies initially validated the crypto thesis, the resulting market acceleration made it highly sensitive to macroeconomic shifts and leverage, causing the initial policy premium to evaporate and benefiting those who held US dollars.
(Source：CryptoSlate)