Opinion: "Trump Rally" failed to support crypto assets, and the market decline erases last year's gains

On December 30, as 2025 approaches the end, the cryptocurrency market’s gains for the year have almost been completely wiped out. Although Bitcoin hit a record high of $126,000 on October 6, the market quickly turned south, with the total market capitalization of digital assets evaporating by approximately $1 trillion over the past few months. The market turning point occurred in mid-October, after Trump announced an escalation of the trade war, leading to a $19 billion liquidation within 24 hours, a historic record. Ethereum then declined by about 40% within a month, and the market cap of Eric Trump’s crypto company also shrank significantly in December. Analysts point out that although the Trump administration’s overall stance is “pro-crypto,” trade conflicts, a tightening macro environment, and high leverage liquidations have had a greater impact on the market. In November, Bitcoin briefly fell below $81,000, marking the largest monthly decline since 2021, and the current price hovers around $90,000. Industry experts warn that the market may enter a new “crypto winter,” but some institutions believe this is more like a typical four-year Bitcoin cycle correction. Both BlackRock CEO Larry Fink and CEX CEO Brian Armstrong stated that, in the long term, institutional funds continue to flow in, and crypto assets are moving from the “gray area” into the mainstream financial system.