The crypto market’s notorious volatility struck again, with a massive $619 million liquidated in just 24 hours, sending shockwaves across the industry.
One of the biggest casualties? Donald Trump’s crypto project, World Liberty, which has reportedly lost $110 million, according to Arkham Intelligence data.
The losses are largely attributed to Ethereum’s price struggles, which accounted for 65% of the decline, alongside a broader sell-off in altcoins.
Now, investors are asking: Is Trump’s influence making crypto stronger or more unstable?
Donald Trump’s crypto holdings have dropped by 13%, mirroring the broader market downturn. The crash also saw the global crypto market cap fall to $2.7 trillion, a level last seen before Trump’s election victory.
The Trump Effect
Trump’s presidency has brought unprecedented attention to crypto, with key developments including:
- The U.S. Strategic Crypto Reserve signals government interest in digital assets.
- The White House Crypto Summit is attracting major industry leaders.
- Bitcoin is reaching all-time highs, driven by renewed investor confidence.
However, critics argue that Trump’s direct involvement has created uncertainty. The market’s extreme volatility since his resurgence has some questioning whether crypto was more stable before his influence.
While Trump’s pro-crypto stance has fueled excitement, analysts warn of serious risks associated with forming a government-backed Bitcoin reserve.
Some of the biggest concerns include:
- Potential market manipulation by the U.S. government.
- Regulatory capture, where officials could favor certain assets.
- Corruption risks, as policymakers could influence holdings for personal gain.
Even Solana’s co-founder called it a violation of decentralization, while crypto critic Peter Schiff mocked Trump’s Bitcoin reserve, sarcastically claiming he’s launching one himself.
Was Crypto More Stable Before Trump?
Since Trump re-entered the political scene, crypto has seen record highs and devastating crashes.
While his crypto-friendly policies aim to establish the U.S. as a global leader in digital assets, they have also increased market speculation and regulatory concerns.
Some critics argue that crypto was better off before Trump, but others believe his influence will drive long-term adoption and clearer regulations.
For now, the market remains divided but one thing is certain: Trump’s involvement is reshaping crypto’s future, for better or worse.
