Trump's second term has reached 100 days, and the crypto market has staged a ‘high opening and low going’ drama!

From the inauguration day on January 20, the total market value of cryptocurrencies soared to $3.621 trillion, but has now shrunk to $3.084 trillion, evaporating $537 billion, equivalent to the GDP of a medium-sized economy! Bitcoin has dropped from its historical peak of $109,500 to $95,200, a pullback of over 13%; Ethereum fared worse, plummeting from $3,453 to $1,801, a nearly 48% drop. This wave of market activity can be described as a ‘rollercoaster’ in the crypto world!

Why has the market cooled down?

1. Trump's ‘crypto heat’ has cooled

Before Trump took office, he played the ‘crypto card’ vigorously, launching his personal meme coin TRUMP, promising to create a ‘Bitcoin superpower’ in the U.S., and even signing an executive order to establish a strategic Bitcoin reserve. These actions once ignited market enthusiasm, pushing Bitcoin past the $100,000 mark! However, 100 days later, the actual progress of policy implementation has been limited, and the market has gradually returned from frenzy to rationality, with investors starting to question how far the ‘Trump effect’ can go.

2. Macroeconomic pressures cannot be ignored

Although the Federal Reserve's interest rate cut expectations have boosted risk assets, global economic uncertainty remains. Trump's tariff policy has triggered market volatility, enhancing the correlation between crypto assets and traditional markets like U.S. stocks, leading to a rotation of funds between stocks, bonds, and the crypto space, which has put pressure on the market. Additionally, there has been a significant net outflow from Bitcoin ETFs recently, further exacerbating the selling sentiment.

My view: Short-term fluctuations, but long-term still promising

In the short term, the crypto market will continue to oscillate. The realization of Trump's policy dividends will take time, and uncertainties in regulation and macroeconomic pressures may continue to weigh on the market. Although Bitcoin has retraced by 13%, it has still maintained the $90,000 level, showing its resilience; Ethereum, on the other hand, is unlikely to see improvements in the short term due to the waning of the DeFi and NFT boom.

In the long term, Trump's pro-crypto stance is a major positive. His plans to reduce regulatory burdens, form a crypto advisory committee, and even incorporate Bitcoin into national reserves could reshape the global crypto landscape. With more institutions entering the market and the proliferation of blockchain technology, the crypto market is expected to reach new highs by the end of 2025.

A small suggestion for the crypto circle

BTC: Conservative investors can look to buy on dips, with $90,000-$95,000 being a strong support level.

ETH: Focus on observation, waiting for stabilization signals below $1,800.