Bitcoin Down: Crypto Markets Show Negative Returns

What to Know:

• One year after Donald Trump’s inauguration, the crypto market is down, with altcoins suffering the most.
• Geopolitical factors and broader market corrections have offset initial optimism for crypto-friendly policies.
• XRP has seen significant losses, reflecting the broader altcoin market downturn despite hopes for regulatory clarity.

One year into Donald Trump’s presidency, the cryptocurrency market finds itself in a state of correction, challenging the initial hopes for a sustained bull run fueled by crypto-friendly policies. While Bitcoin and Ethereum have experienced moderate declines, the altcoin market has been hit harder, with many assets seeing substantial losses. This market performance underscores the complex interplay between political expectations and the realities of crypto market dynamics.

Market Performance Since Inauguration

Since January 20, 2025, Bitcoin has decreased by approximately 15%, trading near $91,000 after reaching an all-time high of over $126,000 in October 2025. Ethereum has fared slightly better, with a decline of about 8% year-over-year, trading near $3,100 after peaking at just under $5,000 in August 2025. However, the altcoin market has experienced more significant downturns.

XRP, for example, has fallen nearly 40% over the past twelve months, trading below $2.00. Solana has seen its price halved, dropping by more than 50% to around $129. These figures highlight a broad-based correction affecting a wide range of digital assets.

Altcoin Bloodbath

According to market analyst Ted Pillows, the losses extend beyond large-cap tokens. Other large-cap cryptocurrencies are down 50% to 60%, mid-cap assets have fallen 70% to 80%, and small-cap and meme coins have seen declines of around 90% over the same period. This downturn reflects a significant correction in the altcoin market, impacting a wide range of assets.

Geopolitical Impacts on Crypto

The Trump administration’s trade policies have introduced volatility into the crypto market. Threats of tariffs on China and the European Union have disrupted Bitcoin’s bullish momentum. For example, a recent wave of market liquidations, totaling approximately $871 million in a single day, followed the confirmation of new tariffs on several European nations. These geopolitical factors have overshadowed the initial optimism for regulatory clarity.

Regulatory Developments and Industry Sentiment

Despite the appointment of pro-crypto officials, such as SEC Chair Paul Atkins, macro events have taken precedence over anticipated regulatory clarity. Ripple CEO Brad Garlinghouse noted in a December 2024 interview that the crypto community had embraced Trump. However, the market’s performance indicates that political support is just one factor influencing the crypto landscape. The lack of significant regulatory breakthroughs has contributed to market uncertainty.

Broader Market Structure and Future Outlook

The performance of Bitcoin and Ethereum relative to altcoins suggests a flight to relative safety amid market uncertainty. Investors may be reallocating capital to more established cryptocurrencies, seeking stability during turbulent times. The performance of XRP is particularly noteworthy, given its historical sensitivity to regulatory news and market sentiment. Looking ahead, the crypto market’s trajectory will likely depend on a combination of macroeconomic factors, regulatory developments, and technological advancements.

In conclusion, the crypto market’s performance one year into Trump’s presidency reflects a complex interplay of factors beyond initial political optimism. Geopolitical events, regulatory uncertainty, and broader market corrections have all contributed to the current downturn. While the long-term outlook for cryptocurrencies remains positive, the market faces significant challenges in the near term.

Related: XRP: CEO Reacts to Ripple Insider Chat

Source: Original article