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Trumpโs Crypto Gamble: Why the Market Crashed Instead of Soaring ๐๐ฅ
๐ By Yaroslav Kalynychenko | March 14, 2025
At the start of 2025, Donald Trumpโs return to the White House sent shockwaves through the crypto world. ๐๐ His administration embraced a pro-crypto stanceโtalking about a strategic Bitcoin reserve ๐ฆ and a softer SEC approach. Many expected this to fuel a massive bull run ๐โฆ but instead, the market crashed! ๐ฑ
Why Did Crypto Fall Despite Pro-Trump Policies? ๐ค
๐ Investors were banking on a pro-Republican boost to the market, but things didnโt go as planned. Letโs break it down:
1๏ธโฃ Unmet Expectations: โBuy the Rumor, Sell the Newsโ ๐ขโก๏ธ๐ฐ
๐น Traders had already priced in the best-case scenario. ๐
๐น Trumpโs big talk about government Bitcoin purchases turned out to beโฆ just thatโtalk. ๐ฃ๏ธ๐จ
๐น When it became clear there were no real BTC purchases, investors took profits instead of holding. ๐๐
2๏ธโฃ Institutional Investors Cashed Out Early ๐ผ๐ธ
๐น Big funds dumped BTC and ETH futures in February 2025 to secure profits from the December peaks. ๐๐ค
๐น The market flipped into backwardationโmeaning futures prices dropped below spot prices. A classic bearish signal. ๐ป๐ป
3๏ธโฃ Macro Storm: Trade Wars & Economic Fear ๐ฃ๐
๐น Trump slapped 25% tariffs on Mexican imports and a whopping 50% on Canadian imports. ๐๐ฒ๐ฝ๐จ๐ฆ
๐น Investors panickedโTreasury yields dropped, the S&P 500 plunged, and crypto followed suit. ๐๐
๐น A Bybit hack further spooked the market, leading to widespread sell-offs. ๐จ๐ฅ
Which Web 3.0 Projects Took the Biggest Hit? โ ๏ธ
1๏ธโฃ Funds & Liquidity Took a Beating ๐๐ฐ
๐น $2.6 billion from US Bitcoin ETFsโthe highest withdrawal since their launch. ๐ฌ๐
๐น Total crypto market cap dropped from $3.7 trillion in December to $3.1 trillion by Februaryโs end. ๐๐
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