President Trump began his term in 2026 with the declaration of making the United States the centre of crypto activities worldwide. The measures he took, namely, appointing Paul Atkins to the SEC, and his executive actions, among others, were some of the indicators of the Treasury’s great interest in digital coins.
The GENIUS Act provided the regulatory framework for stablecoins, thus allowing near-instantaneous transfers and boosting the confidence of investors. Trump’s family members, on the other hand, got into bitcoin mining and crypto financial services, also the $TRUMP meme coin, which stirred up ethical questions but at the same time created interest in the market.
Trump vowed 2025 U.S. would lead global crypto. [Source: VPM.org]
Why Did Bitcoin Crash Despite Record Highs?
In October, the price of Bitcoin reached almost $126,000 per coin, which was its value in November 2024 and a bit more.
However, on the 10th of October, Trump came up with a proposal to increase the tariff on Chinese goods to a whopping 100%, besides the already existing 30% tariffs. The move caused panic among the traders who quickly sold off their risky assets, including cryptocurrencies.
The result was a price drop of 30% for Bitcoin. Despite the fact that later on Trump pulled back his threat, the price of Bitcoin remained under pressure, in contrast to the S&P and the Dow that concluded 2025 with remarkable gains.
What Role Did Leverage Play in Crypto Losses?
Trump’s election victory was only a suggestion for heavy speculation; thus, the investors were even borrowing to buy more of the crypto using their existing holdings as collateral.
The use of this leverage resulted in huge profits during the boom but not losses that were hard to bear during the October sell-off.
Investors are still very careful and are taking a wait-and-see approach, which is in contrast with the traditional markets that are growing steadily. Analysts point out that the combination of leverage and volatility is still the feature of the crypto market 2026 risks.
Investors borrowed heavily, using holdings as crypto collateral. [Source: Loansjagat.com]
Trump Crypto Influence Has Long-Term Implications
Trump’s measures have caused a radical change to the crypto environment and market, permanently. Digital currencies have entered the world of finance mainly due to executive support, nice legislation, and family ventures.
The passing of the GENIUS Act and the imminent CLARITY Act might lead to the merging of the Commodity Futures Trading Commission’s jurisdiction over the whole area, thereby making it more secure.
This is where we are at the moment: investors are taking a glass-half-full view, but the entire market is very much still under the influence of political moves.
Cryptocurrency Market 2026 Shows Signs Of Maturity
On the other hand, the insiders are giving a positive outlook, though there are still ups and downs in the market. Experts see the crypto market more like an evolving industry instead of a speculative one.
The presence of regulatory frameworks and the interest from institutions like JPMorgan Chase that are considering crypto trading for their clients have been indicators of a more stable growth. Though there is still volatility, yet firms, regulators, and banks are aligning to minimise systemic shocks, and this is the very beginning of the 2026 turn of the cryptocurrency market.
Regulations and institutional interest signal stable crypto growth in 2026. [Source: AInvest]
Will Crypto Avoid Future Crashes?
The past cycles tell us not to forget that crypto has always been a roller coaster in terms of booms and busts, periods of high and low prices. The October 2025 crash is, for instance, reminiscent of earlier downturns, e.g. FTX in 2022 or the 2018 ICO bubble bursting.
By the same token, experts issue a warning that the coexistence of crypto and traditional finance may lead to larger and quicker losses in the subsequent crashes. Notwithstanding the above, the increased scrutiny, the backing of legislation, and the maturation of the market might just be the factors that will prevent the “lights out” scenario.
Trump’s crypto influence is still dominating over the investors’ psyche and the market, the strategies being employed.
Also read: Trump-Linked Cryptocurrency Audit Turmoil Draws Global Attention
FAQs
Q1: How did Trump influence the crypto market in 2025?
Trump’s policies, appointments, and family ventures boosted investor confidence and regulatory support.
Q2: Why did Bitcoin fall sharply in October 2025?
A tariff threat on Chinese imports triggered panic selling, causing bitcoin to drop 30% from its peak.
Q3: What is the GENIUS Act?
It is legislation that formalises rules for stablecoins, enabling faster transfers and more secure trading.
Q4: Is the cryptocurrency market in 2026 safer for investors?
Stronger regulations, institutional interest, and market maturity are improving stability, though volatility persists.
