Opinion: The "Trump rally" failed to support crypto assets, and the market pullback erased year-to-date gains.
TL;DR
The cryptocurrency market erased its 2025 gains after a sharp pullback, triggered by Trump's tariff war announcement and high-leverage liquidations, leading to warnings of a potential 'Crypto Winter' despite long-term institutional optimism.
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On December 30th, as 2025 drew to a close, the cryptocurrency market had almost completely erased its gains for the year. Although Bitcoin hit an all-time high of $126,000 on October 6th, the market subsequently plummeted, with the total market capitalization of digital assets evaporating by approximately $1 trillion over the past few months.
The market turning point came in mid-October when Trump announced an escalation of the tariff war, resulting in a record $19 billion in liquidations in the crypto market within 24 hours. Ethereum subsequently fell by about 40% in the following month, and the market capitalization of Eric Trump's crypto company also shrank significantly in December.
Analysts point out that although the Trump administration's overall stance is "pro-crypto," the tariff conflict, the tightening macroeconomic environment, and the high-leverage cleanup have had a greater impact on the market. Bitcoin briefly fell below $81,000 in November, marking its largest monthly drop since 2021, and is currently fluctuating around $90,000.
Industry insiders warn that the market may be entering a new "Crypto Winter," but some institutions believe it's more like a typical four-year Bitcoin cycle correction. BlackRock CEO Larry Fink and Coinbase CEO Brian Armstrong both stated that institutional funds continue to flow in over the long term, and crypto assets are moving from the "grey area" into the mainstream financial system.