Cryptocurrency investors are navigating turbulent waters as President Donald Trump pushes forward with policies aimed at making the United States the “crypto capital of the planet.” While his administration’s stance has injected optimism into digital markets, it has also unleashed extreme price fluctuations, leaving investors uncertain about what lies ahead.
A Market in Flux
Nick, a 28-year-old construction worker from Pennsylvania, was enjoying his weekend when he received a startling notification—crypto markets were in freefall.
“I clicked on it and watched it for like a minute just drop straight down,” he told AFP. “I was like, ‘Well, I guess I should stop looking at it now’,” he added with a nervous laugh.
Nick, who has been investing in cryptocurrencies for five years, saw his portfolio shrink dramatically. He had amassed $150,000 in digital assets, primarily in Dogecoin—a meme coin championed by billionaire and Trump ally Elon Musk. Within hours, $60,000 had vanished from his holdings.
Despite the losses, he remains convinced that crypto assets will bounce back, much like they did in 2021.
“I try to talk about it with my co-workers, but they don’t believe in it like I do,” he said.
Political Moves Spark Market Swings
Bitcoin, the most valuable and influential cryptocurrency, has surged by nearly 50% since Trump’s election victory. However, his recent announcement of trade tariffs on imports from Canada, China, and Mexico triggered a sharp selloff in digital assets. Investors, rattled by economic uncertainty, moved their money into safer investments, causing Bitcoin to plummet by 6% at its lowest point. Ether, another leading cryptocurrency, suffered an even steeper drop of nearly 25%.
Meme coins—highly volatile tokens with little economic utility—experienced the most significant losses. These assets, often driven by social media hype and celebrity endorsements, have proven to be particularly susceptible to market swings.
Expert Warnings on a ‘Bubble’
Larisa Yarovaya, an expert from Southampton Business School, cautioned that Bitcoin’s meteoric rise is “definitely driven by investment optimism surrounding political endorsements.” However, she warned that the market is at risk of forming a bubble that could burst, causing ripple effects across traditional financial systems.
“Powerful individuals can easily exploit the trust of their followers for personal gain, leading to serious conflicts of interest,” Yarovaya said.
Trump’s deep involvement in the crypto sector has only added to concerns. A day before his inauguration, he launched his own meme coin—dubbed “Trump”—raising ethical questions about how his administration’s policies might influence the industry.
The High-Stakes Gamble
For many investors, meme coins are a high-risk, high-reward venture. Stan, a 28-year-old Paris-based public affairs consultant, likened investing in these assets to “buying a lottery ticket.”
Savva, a 26-year-old research assistant from London, knows the volatility all too well. His initial foray into meme coins yielded a quick $700 profit, but the experience soon became overwhelming.
“A lot of the times I couldn’t hold conversations because I was worried that my assets were doing poorly or that I was going to lose all my money,” he admitted.
He even built his own trading bot to capitalize on meme coin trends, but the stress proved too much. After losing his $5,000 investment, he decided to step away from the market.
“It took a huge toll on me physically and mentally and I was just like, ‘I need to stop,’” he said. “It’s always too late when you realise.”
As Trump’s administration continues to shape the regulatory landscape for cryptocurrencies, investors must brace themselves for a market that remains as unpredictable as ever.
