As reported by CoinRepublic, 2025 saw two major crypto market crashes driven by macroeconomic factors and Trump's tariff policies. The first crash in Q1 saw the market cap drop from $3.6 trillion to $2.42 trillion by April 9, while the second crash in Q4 reduced it further to $2.89 trillion by November 22. The first event was triggered by Trump's tariff wars, causing investors to flee risk-on assets. A temporary pause in tariffs led to a recovery, but the threat of renewed tariffs and heavy selling by long-term holders fueled the second crash. In Q4, macroeconomic concerns, including U.S. inflation, unemployment, and the potential Yen carry trade unwind, further suppressed market sentiment.
2025 Crypto Market Crashes: Trump Tariffs and Macro Factors Trigger $2.6 Trillion Loss
The Coin RepublicShare
Summary
The crypto market faced two major crashes in 2025 due to Trump’s tariff policies and macroeconomic pressures. The first crash in Q1 slashed the market cap from $3.6 trillion to $2.42 trillion by April 9. A temporary pause in tariffs sparked a brief recovery, but renewed fears and heavy selling by long-term holders triggered a second drop to $2.89 trillion by November 22. The fear and greed index reflected heightened anxiety as U.S. inflation, unemployment, and the Yen carry trade unwind weighed on sentiment.
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