Cryptocurrency markets ends 2025 with losses
Trump’s return to the White House in early 2025, following a campaign focused on an “America First” agenda, aimed to revive the US economy, increase employment, and reduce living costs through tariffs and tax reforms. Cryptocurrencies were among the asset classes expected to benefit during his second term.
On March 6, 2025, Trump signed an executive order establishing a Strategic Bitcoin Reserve and a US Digital Asset Stockpile, declaring a vision for the United States to become a global Bitcoin superpower. Following this announcement and interest rate cuts by the US Federal Reserve, Bitcoin reached a record $126,199, while Ethereum rose to $4,956.
However, global uncertainties tied to the administration’s policies and questions about the Fed’s future monetary stance led to selling pressure across crypto markets. Bitcoin, after surpassing $100,000 in January 2025, began declining in February, dropping below $80,000 in March. The cryptocurrency rebounded above $100,000 in May following a 90-day US-China tariff pause but fell again below $85,000 by November due to renewed concerns over Fed rate cuts and high technology stock valuations.
Bitcoin opened Trump’s term at $103,644 on Jan. 20, 2025, and traded around $90,000 throughout the year, remaining below its peak.
Uraz Cay, a global markets strategist at Turkish investment broker AK Yatirim, noted that while Bitcoin traded roughly 35% higher than in November 2024, it remained about 27% below its October 2025 record.
“Despite Fed rate cuts in 2024 and 2025, the Trump administration’s positive steps for the crypto market, and the emergence of more crypto-based instruments within the financial system, we reached a point below the return levels that investors are used to seeing in past crypto bull markets,” Cay said.
He added that institutional adoption of Bitcoin has yet to meet expectations, while digital gold outperformed real gold. The rise of stablecoins has also introduced new debt sources for the US, creating geopolitical risks that spill over into the crypto market.
Cay emphasized that Bitcoin’s weakening correlation with other investment instruments points to strong diversification potential, though precious metals remain dominant in portfolios. “Since the most crowded trades in portfolios are in precious metals, digital gold has yet to come into play as real gold rose and continues to rise,” he said.
He also noted that total assets in Bitcoin spot Exchange-Traded Funds (ETFs) declined by October 2025 but still held a value of about $125 billion.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
