View: The 'Trump Pump' Fails to Support Cryptocurrencies as Market Downturn Erodes Year-to-Date Gains

BlockBeats News, December 30th. As 2025 draws to a close, the cryptocurrency market has almost entirely retraced its year-to-date gains. Despite Bitcoin hitting a new all-time high of $126,000 on October 6th, the market quickly reversed course, with the total market capitalization of digital assets evaporating by around $1 trillion over the past few months.

The market turning point came in mid-October when Trump announced an escalation in the trade war, leading to a $19 billion liquidation in the crypto market within 24 hours, setting a historical record. Ethereum then dropped by about 40% over the following month, and Eric Trump's crypto company saw a significant decrease in its December market value.

Analysts point out that despite the overall "crypto-friendly" stance of the Trump administration, the greater market impact came from the trade conflict, a tightening macro environment, and high-leverage liquidations. In November, Bitcoin briefly fell below $81,000, marking the largest monthly decline in 2021. The price is currently fluctuating around $90,000.

Industry warnings suggest that the market may be entering a new phase of "crypto winter," but some institutions believe this is more of a typical Bitcoin four-year cycle pullback. Both BlackRock CEO Larry Fink and Coinbase CEO Brian Armstrong have stated that institutional funds are still flowing in in the long term, and that crypto assets are transitioning from the "gray area" to the mainstream financial system.