The global cryptocurrency market has suffered a staggering $800 billion loss in recent weeks, as the post-election enthusiasm that briefly lifted digital assets fades amid scandals, policy disappointments, and a broader sell-off in risk assets.
Bitcoin, the industry’s flagship cryptocurrency, fell another 3.6% on Wednesday to $85,600, extending its monthly losses to 15%. Other tokens have fared even worse, as investors react to the largest crypto theft in history and growing disillusionment with the policies of U.S. President Donald Trump.
According to data from CoinMarketCap, the crypto industry’s total market value has fallen by $810 billion from its January peak. One of the main drivers behind the decline has been a record exodus from Bitcoin exchange-traded funds (ETFs), with nearly $1 billion in outflows on Tuesday alone, as reported by Bloomberg. Trump’s aggressive tariff policies have also spooked investors, pushing them away from volatile assets like crypto.
“The slower-than-anticipated rollout of any major pro-crypto policies has led to disappointment,” said Gadi Chait, investment manager at Xapo Bank. Many traders had hoped that Trump would quickly introduce new regulations encouraging large financial institutions to invest in crypto or even have the U.S. government buy Bitcoin. Instead, his most high-profile crypto-related move has been the launch of a memecoin, which has since plunged 83% in value, fueling further skepticism.
According to the Financial Times, the decline in crypto markets has been exacerbated by a series of high-profile scandals. A memecoin promoted by Argentina’s President earlier this month collapsed in value, leaving investors with steep losses. Meanwhile, Melania Trump’s own memecoin project has faced widespread criticism.
Adding to the turmoil, a historic $1.5 billion hack targeting crypto exchange Bybit last week has shaken confidence in digital asset security. Ethereum, the second-largest cryptocurrency, has plunged 23% in the past month, while Solana, a key blockchain for memecoins, has seen an even steeper 42% drop.
“What crypto is digesting right now is the end of the memecoin boom,” said Matt Hougan, chief investment officer at Bitwise. He warned that until institutional investors regain confidence, “the loss of energy will create a drag on the market.”
