The crypto market just experienced one of its worst days in months, and Trump may have felt the heat as well.
In a recent video released by The Bulwark, hosts Tim Miller and Catherine Rampell explained the crash, its causes, and why the Trump family’s deep exposure to crypto makes this sale different from others.
ATOUTUSD Coin Down, Bitcoin Returns to 2021 Levels
Bitcoin fell to $60,000, with realized losses reaching around $3.2 billion in a single day – the highest daily total on record. It is now 46% below its all-time high, returning to its 2021 level. Ethereum has lost 50% over six months. Dogecoin fell 66% in one year.
THE ATOUTUSD the meme piece was hit the hardest. It is currently trading at $3.33, down 95.58% from its all-time high just a year ago.
Bessent says there is no crypto bailout plan
Treasury Secretary Scott Bessent has made one thing very clear: the government is not coming to save crypto. This statement plunged markets into further panic, triggering forced liquidations and stop-loss cascades that deepened the fall.
The biggest problem is rising long-term interest rates.
Rampell explained it simply: “You want money to be really cheap… when long-term rates rise, that tends to be bad for asset bubbles.” »
Cheap money fuels speculation. When borrowing becomes expensive, assets like meme coins are the first to break.
The Trump Family’s Secret Crypto Deal With Abu Dhabi
The Wall Street Journal reported that the Trump family’s crypto exchange sold a 49% stake to an Abu Dhabi royal who is the country’s national security chief. No one knew about the deal until reporters broke the story.
Rampell raised the concern directly: “We don’t have much visibility into these transactions and we don’t know if Trump and his family are making many shady deals or if they are selling at different times to enrich themselves.”
Gold up, crypto down?
As crypto collapsed, gold continued to rise.
According to Rampell, this gap calls into question the idea that Bitcoin functions as a hedge against inflation. She argued that gold has thousands of years of history behind it, while crypto still behaves more like a speculative risk asset tied to cheap money conditions.
Retail investors hit hardest
Rampell was blunt about who loses the most here: “There are a lot of people who may have lost their shirts and can’t afford it.”
With this level of political involvement in crypto markets, questions around transparency and investor protection will only increase.
FAQs
What caused the recent major crypto market crash?
A combination of high investor losses, a government statement ruling out a crypto bailout, and a rise in long-term interest rates that reduced cheap money aimed at speculation triggered the sell-off.
Is Bitcoin still a good inflation hedge like gold?
Recent trends challenge this idea. As gold rose, Bitcoin crashed, behaving more like a speculative risk asset dependent on low interest rates rather than a stable store of value.
Who is most affected by a crypto market crash?
Retail investors often suffer the greatest losses because they may be investing money they cannot afford to lose in these highly volatile and speculative digital asset markets.
