One year after Donald Trump’s inauguration an event many in the industry hailed as the start of a pro-crypto era the digital asset market is largely underwater.
Bitcoin and Ethereum have posted relatively modest declines, but the broader altcoin market has been hit hard. Smaller tokens have plunged between 70% and 90% from their levels on inauguration day, challenging early hopes that a “crypto president” would spark a sustained bull market and regulatory breakthrough.
Market Reality vs. Early Expectations
Data from CoinGecko shows that since January 20, 2025, Bitcoin is down about 15%, trading near $91,000 after peaking above $126,000 in October 2025. Ethereum has fared slightly better, slipping roughly 8% over the year to around $3,100, down from its August 2025 high just below $5,000.
Losses are far deeper across other major cryptocurrencies. XRP has fallen nearly 40% and now trades below $2, while Solana has dropped more than 50% to around $129.
According to analyst Ted Pillows, the downturn extends across the entire market. Large-cap altcoins are down roughly 50% to 60%, mid-cap tokens have lost 70% to 80%, and small-cap and meme coins have been decimated by close to 90%.
This widespread correction stands in stark contrast to the optimism that followed Trump’s election victory in November 2024, when analysts predicted regulatory clarity and a favorable environment for altcoins and DeFi.
Geopolitics Weigh on Crypto Markets
Over the past year, geopolitical and macroeconomic pressures particularly Trump’s aggressive trade stance have repeatedly disrupted market momentum. Ongoing tariff threats against China and the European Union have fueled volatility and capped Bitcoin’s rallies.
One recent example saw nearly $871 million in crypto liquidations in a single day after Trump confirmed new tariffs on several European countries.
Despite the appointment of crypto-friendly officials, including SEC Chair Paul Atkins, broader macro forces have overshadowed regulatory optimism. As Ripple CEO Brad Garlinghouse noted in late 2024, political backing alone is not enough and the market’s performance over the past year has reinforced that reality.
