Cryptocurrency slump erases 2025 financial gains and Trump-inspired optimism

Last few months of the year have seen $1tn in value wiped from the market, despite all-time-high price of bitcoin

As 2025 comes to a close, Donald Trump's favorable approach to cryptocurrency has not proven to be enough to sustain the industry's gains, once the source of market-wide optimism and enthusiasm. The last few months of the year have seen $1tn in value wiped from the digital asset market, despite bitcoin hitting an all-time-high price of $126,000 on 6 October.

The October price peak was short-lived. Bitcoin's price tumbled just days later after Trump's announcement of 100% tariffs on China sent shockwaves across the market on 12 October. The crypto market saw $19bn liquidated in 24 hours - the largest liquidation event on record. Ethereum, the second-largest cryptocurrency, saw a 40% drop in price over the next month. Eric Trump's own crypto company endured a similar drop in its value in December.