Bitcoin plunged dramatically from its peak, shattering the dreams of crypto enthusiasts who had been riding high just weeks earlier. The digital currency hit a staggering all-time high of $109,241 on Trump’s inauguration day, January 20, 2025. Fast forward to late February, and Bitcoin was trading at just $79,525—a brutal 25% drop. Ouch.
The crash wasn’t isolated. Other cryptocurrencies followed Bitcoin’s nosedive, with Ether down 7.3%, Solana dropping 7.1%, and XRP falling 7.8%. The whole crypto party seemed to be ending at once. Trading volumes skyrocketed 141%, suggesting panic was spreading faster than crypto memes on Reddit.
So what happened? Trump’s proposed tariffs on Mexico, Canada, and China spooked markets. Economic uncertainty hit hard. The Federal Reserve’s potential interest rate hikes didn’t help either. And just like that, the “crypto euphoria” of early 2025 evaporated into thin air.
Investors who were all-in on Trump’s supposedly pro-crypto stance got a reality check. The administration’s actual policies triggered inflation fears, and suddenly speculative assets didn’t seem so appealing. Bitcoin’s plunge to these levels hasn’t been seen since November last year. Funny how quickly sentiment can flip.
The crypto dream met policy reality, and suddenly HODL became a four-letter word for Trump’s true believers.
The market hit rock bottom in March at $74,500 before showing signs of life. Some analysts point to an 8% intraday rebound on March 1 as evidence of resilience. But let’s be real—the volatility is stomach-churning. Daily price swings of 8% aren’t for the faint of heart.
Is this the end? History suggests otherwise. Bitcoin has crashed and rebounded countless times. It’s practically a tradition at this point. Despite the current downturn, Bitcoin remains up approximately 50% since August 2024, providing long-term investors with some comfort. Historical data shows that the average bear market in cryptocurrency lasts about 289 days, so we could be in for a lengthy downturn. Investors are now eyeing institutional demand and regulatory clarity as potential catalysts for recovery.
For now, the crypto rollercoaster continues. Those who bought at the top are underwater. Those who’ve been around longer are probably just rolling their eyes. Same story, different year. The only certainty in crypto? Uncertainty.
