New york: The re-election of US President Donald Trump in late 2024 initially brought hope to the cryptocurrency markets, but by the end of 2025, major digital currencies such as Bitcoin and Ethereum experienced significant losses.
According to Anadolu Agency, Trump's return to the White House was marked by a campaign focused on an 'America First' approach, promising economic revitalization through tariffs and tax reforms. The cryptocurrency sector was anticipated to thrive under Trump's second term, as he aimed to position the US as a global leader in Bitcoin, even signing an executive order to establish a Strategic Bitcoin Reserve and a US Digital Asset Stockpile.
These measures, coupled with interest rate cuts by the US Federal Reserve, initially boosted Bitcoin to a record $126,199 and Ethereum to $4,956. However, uncertainty over Trump's policies and the Federal Reserve's future direction led to selling pressure in the crypto markets. Bitcoin, which surpassed the $100,000 threshold in January 2025, began to decline in February, dropping below $80,000 in March before briefly recovering above $100,000 amid a temporary US-China tariff pause in May.
Uraz Cay, a global markets strategist at Turkish investment broker AK Yatirim, noted that despite the Federal Reserve's rate cuts and the Trump administration's efforts to support the crypto market, Bitcoin remains below its January 2025 levels. The cryptocurrency traded around $90,000 during Trump's first year back in office, significantly lower than its peak.
Cay highlighted the performance of digital gold compared to real gold and pointed out that stablecoins have become a new source of debt for the US, creating geopolitical risks that have affected the crypto market. He emphasized the potential of Bitcoin, noting its strong diversification potential and the impact of precious metals dominating investment portfolios.
Cay also suggested that a correction in precious metal prices might renew interest in Bitcoin. He observed that the Nasdaq 100 index has outperformed Bitcoin, despite Bitcoin's lower correlation with traditional investment instruments. He concluded that a shift in investor focus from precious metals to Bitcoin could potentially drive renewed interest in the cryptocurrency market.