### Why Is Bitcoin Falling Despite Trump’s Support for Crypto?
The anticipation surrounding Donald Trump’s return to the presidency in 2024 was that it would herald a prosperous period for cryptocurrency.
So, why has **Bitcoin** experienced a nearly 20% drop in value since his inauguration?
Cryptocurrency is frequently characterized by its erratic nature, with significant price fluctuations being the norm. Nevertheless, Bitcoin and the wider crypto market had been on a consistent upward path, even surpassing the six-figure threshold for the first time following Trump’s election.
Here’s an analysis of why Bitcoin is declining—and the extent to which this is connected to Trump.
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## The $TRUMP Memecoin Misfire
Trump’s unexpected introduction of his **$TRUMP** memecoin merely days prior to his inauguration initially appeared to be an enormous success. The token surged from being nearly worthless to approximately $75, marking it as the most successful memecoin launch ever. Reports indicate that the Trump family and their associates generated an estimated **$100 million in trading fees**—without liquidating any of their own holdings.
Nevertheless, for many regular investors, $TRUMP turned out to be a calamity. As per *The New York Times*, more than **810,000 crypto wallets** have collectively incurred losses of **$2 billion** due to the token’s nosedive.
The fallout didn’t stop there. Other Trump-related memecoins, like **$MELANIA** and **$LIBRA** (backed by Argentinian President Javier Milei), also floundered, erasing billions from the crypto landscape.
While memecoins bore the brunt of the downturn, Bitcoin and other leading cryptocurrencies also experienced repercussions as investors withdrew capital from the market.
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## Trump’s Pro-Crypto Actions Have Disappointed
Despite the initial excitement, Trump’s actions in office have thus far failed to align with the grand expectations of the crypto sector.
Leaders in the crypto industry rallied behind Trump in the 2024 election, hoping he would:
– Terminate federal probes into crypto companies
– Relax regulations
– Enact pro-crypto legislation
Trump has made some movements in that direction. His **SEC dismissed its lawsuit** against Coinbase, the largest U.S. crypto exchange, and he issued an **executive order** aimed at fostering cryptocurrency adoption.
However, apart from assisting a handful of select firms and making broad promises, Trump has not yet realized substantial policy shifts.
With Trump’s own memecoin initiative siphoning funds from the sector, numerous investors are casting doubt on his dedication to crypto.
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## The Largest Crypto Theft in History
Compounding the chaos, hackers recently **swindled $1.5 billion** from Bybit, one of the largest crypto exchanges worldwide—the biggest heist in crypto history.
This single breach represented over half of all cryptocurrency stolen in the previous year. While Bybit has since compensated affected users through loans and substantial deposits, trust in the platform has plummeted. In a single night, **$5.3 billion** was withdrawn from Bybit as investors hurried to safeguard their assets.
With rising security concerns, many crypto investors are pulling their funds from exchanges entirely, exacerbating market instability.
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## Economic Instability Under Trump
Beyond the crypto realm, overall economic uncertainty under Trump is also contributing to Bitcoin’s downturn.
Factors adding to market unpredictability include:
– Widespread layoffs of federal employees by Trump and Elon Musk
– Erratic economic policies that fluctuate according to Trump’s impulses
– Escalating prices of goods
– Persistent threats of new tariffs
While some within the crypto realm assert that Bitcoin is shielded from conventional market trends, history shows a different narrative. When the economy is unstable, investors typically retreat from riskier assets—including cryptocurrency.
Trump may eventually fulfill his promises to ease crypto regulations, but the pressing question is: **Will investors still have capital left to invest by that time?**
The crypto market is about to discover the answer.