Cryptocurrency Markets See Volatility One Year After Trump’s Inauguration

The Crypto market has experienced significant fluctuations a year after Donald Trump’s inauguration on January 20, 2025.

A few months after returning as the U.S President, major digital assets including Bitcoin and Ethereum recorded notable increase as investors optimism increased.

Some of this optimism came from the promises shared by the new administration with its plan to create and support a clearer and regulated economy for crypto to thrive.
At the same time, some politically themed tokens linked to the president like the $TRUMP coin and the $MELANIA coin entered trading platforms, briefly attracting more trading volumes and media attention.
At the early stage of the $TRUMP token launch, there was an increase as the trading volumes reached billions of dollars reflecting the high speculative demand. Simultaneously, $MELANIA coin also experienced a short-term price spike, driven primarily by social media interest.

By the second quarter of 2025, however, the two tokens had lost the majority of their value. $TRUMP coin declined by over 90% from its initial highs, while the $MELANIA coin fell nearly 99%.

Also Read: Bitcoin Crashes Below $105k as Trump’s 100% China Tariff Triggers Huge Sell-Off

Mainstream cryptocurrencies were also not left out as it suffered major price volatility. Bitcoin, for instance, reached a high of $126,210 but has currently lost 30% of that momentum and some of the loss came from the “un-ending” U.S trade wars with other nations.

Ethereum and other major tokens have experienced similar price adjustments. Analysts have cited broader market corrections and investors uncertainties as some of the primary factors behind these movements.

Political Influence on Cryptocurrency Trading

Overall, as the crypto market continues to mature, it is clear that the market is very sensitive to political developments unlike traditional assets.
As of time of writing, Bitcoin price trades at $83,799 and Ethereum price is at $2,687. Market participants continue to monitor the regulatory developments and political events for potential short-term impacts on cryptocurrency valuations.

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