Crypto Market Faces Prolonged Downturn Since Trump's Inauguration
The crypto market has been on a rough ride, and it hasn’t stopped bleeding since Donald Trump’s inauguration on January 20, 2025. While many assumed the downturn began in February, the reality is that altcoins have been sliding since early December. The numbers paint a bleak picture—Bitcoin ETFs saw record outflows, and the market sentiment indices, including the Fear and Greed index, are deep in bearish territory.
Let’s rewind a bit. Back in January, things still looked relatively strong. The total crypto market cap was just 3% below its all-time high when Trump took office. But here’s the catch—Bitcoin was doing most of the heavy lifting, reaching an all-time high of $108,800. Meanwhile, altcoins had already peaked back on December 8, 2024, at a staggering $1.9 trillion. Since then, they’ve been in freefall, now sitting below $1.2 trillion—a painful one-third drop.
Also Read:- Bitcoin’s Slide: What’s Happening and Should Investors Worry?
- Bobbi Ann Brady Secures Haldimand-Norfolk Seat in a Major Victory
It’s been nearly three months of decline, and the situation isn’t improving. Bitcoin’s early-year performance may have masked the broader market downturn, but investors quickly realized that optimism alone couldn’t keep prices afloat. Negative news only fueled the fire—major exchange hacks, a slump in Michael Saylor’s company’s stock, and regulatory uncertainty. All of this serves as a brutal reminder of crypto’s infamous volatility.
So, what’s next? Right now, the market lacks strong bullish catalysts. Without a major turnaround event, altcoins might continue their downward spiral. Investors are treading cautiously, and many are waiting for stability before jumping back in. While Bitcoin remains relatively strong compared to other assets, the overall sentiment in the crypto space is far from optimistic.
The next few weeks will be crucial. Will crypto find its footing, or is there more pain ahead? One thing is certain—volatility is the only guarantee in this market.
Read More:
0 Comments