Almost everyone in the cryptocurrency community rejoiced at President Trump’s second election, as he fervently supported the industry, vowing to transform the United States into the “crypto capital of the planet.”
However, the individual dubbed “the first Bitcoin president” is now overseeing a decline in Bitcoin’s value.
Following Mr. Trump’s announcement of global tariffs last week, Bitcoin’s price plummeted by 10 percent, falling below $78,000 on Sunday night. In January, Bitcoin had reached an all-time high of nearly $110,000 on the day of Mr. Trump’s inauguration.
This swift decline illustrates that Bitcoin, often promoted as a stable long-term asset, remains vulnerable to fluctuations in the broader market, which has suffered since the announcement of extensive import taxes. Many investors approach Bitcoin like any other technology stock, a speculative asset that is wise to liquidate during challenging times.
Since securing a second term, Mr. Trump has largely fulfilled his commitments to bolster the crypto sector. He has appointed pro-crypto regulators and issued an executive order aimed at establishing a government reserve of Bitcoin.
Simultaneously, Mr. Trump has expanded his personal investments in the crypto space, even promoting a memecoin to his followers.
Nevertheless, the effect of his tariffs has caused some discontent within the community.
“Crypto is peculiar, but it’s largely linked to optimism & risk appetite,” commented Haseeb Quresehi, a venture capitalist specializing in crypto, on social media on Sunday. “That optimism is dwindling in light of Trump’s silence.”
