The sudden collapse of the cryptocurrency market has put Donald Trump’s growing exposure to cryptocurrencies under new scrutiny.
Bitcoin has fallen to 2021 levels as meme coins associated with President Trump suffered even greater losses.
Rising interest rates and hidden crypto transactions are raising new questions about risk and transparency.
The cryptocurrency market just had its worst day in months, and President Trump may have been feeling the heat.
In a recent video analysis by The Bulwark, hosts Tim Miller and Katherine Rampel unpack the causes, causes, and why the Trump family’s deep crypto exposure makes this crash unlike any other.
$Trump Coin decline, Bitcoin returns to 2021 levels
Bitcoin tumbled toward $60,000, with realized losses reaching nearly $3.2 billion in just one day, the highest single-day total ever. It is now 46% below its all-time high and back to 2021 levels. Ethereum has fallen 50% in six months. Dogecoin has fallen 66% in one year.
of $Trump Meme coins were hit the hardest. It is currently trading at $3.33, down 95.58% from its high just one year ago.
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Vescent says it will not bail out cryptocurrencies
Treasury Secretary Scott Bessent has made it clear that the government is not here to save cryptocurrencies. This statement further panicked the market and triggered a chain of forced liquidations and stop losses, further exacerbating the decline.
An even bigger problem is the rise in long-term interest rates.
Rampel explained it simply: “You want money to be really cheap…when long-term interest rates rise, that tends to be bad for asset bubbles.”
Cheap funds fuel speculation. When borrowing becomes too expensive, assets like meme coins are the first to be destroyed.
The Trump family’s secret crypto deals with Abu Dhabi
The Wall Street Journal reported that the Trump family’s cryptocurrency exchange sold a 49% stake to an Abu Dhabi royal family member who serves as the head of national security. No one knew about the deal until journalists reported the story.
Mr. Lampel directly expressed his concerns. “We don’t know much about these transactions and whether Mr. Trump and his family are making shady deals and selling themselves in various places to line their own pockets.”
Will gold rise and cryptocurrencies fall?
While cryptocurrencies plummeted, gold continued to rise.
According to Rampel, this gap casts doubt on the idea that Bitcoin acts as a hedge against inflation. She argued that while gold has a history spanning thousands of years, cryptocurrencies still behave like speculative risk assets tied to cheap funding conditions.
Individual investors will be hit the hardest
As for who will lose the most here, Rumpel was candid: “There are a lot of people who may have lost their shirts but can’t afford it.”
With so much political involvement in crypto markets, questions around transparency and investor protection will only grow louder.
