Trump Couldn't Save Crypto From This Crash

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During the 2024 presidential campaign, Donald Trump vowed to make the U.S. the 'crypto capital of the planet.' After his election, crypto prices rose rapidly, and Trump took credit. However, the crypto market has since crashed, with bitcoin's value dropping from over $126,000 to around $69,000 and the global market cap shedding more than $2 trillion. The article argues that Trump's support for the industry, including his family's investments and the administration's crypto-friendly policies, was not enough to insulate it from the natural volatility of the crypto market.

Why it matters

This case demonstrates that even a president's explicit support and promotional efforts for an industry cannot override the inherent volatility and market forces that govern that industry. It raises questions about the limits of political influence on financial markets, especially in a sector as speculative and unpredictable as cryptocurrencies.

The details

After Trump's election, crypto prices rose rapidly, with bitcoin crossing the $100,000 mark. However, the market has since crashed, with bitcoin's value dropping to around $69,000 and the global crypto market cap shedding more than $2 trillion. The article argues that while Trump's election and pro-crypto policies likely helped boost prices initially, they were not a guaranteed buffer against future instability. Crypto's fate is tied to more than just the Trumps' investments and the administration's deregulation efforts.

• On October 6, the price of a single bitcoin climbed to an all-time high north of $126,000.
• As of today, the value of bitcoin is closer to $69,000.

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