- Trump has delivered on crypto's regulatory wish list.
- His tariffs have erased benefits from his crypto policies.
- Trump's own ventures decried as 'worst side of crypto.'
A version of this story appeared in our The Guidance newsletter on April 7. Sign up here.
They’re calling it Orange Monday.
Few expected that Donald Trump, the self-proclaimed crypto president, would trigger the worst selloff to hit Bitcoin and its ilk since May 2022.
The crypto market has plunged 30% since his inauguration, which matches the drop three years ago when Terra melted down.
The drop demonstrates just how vulnerable cryptocurrencies are to the radical trade programme Trump unleashed last week.
It’s hard to recall a head of state single-handedly crashing global markets with one policy.
Economic agenda
Then again, Trump did telegraph quite clearly during the 2024 campaign that tariffs would be the centrepiece of his economic agenda.
For all the regulatory relief Trump has provided to the crypto industry — ending Gary Gensler’s crackdown, starting a Bitcoin strategic reserve — his sweeping tariffs has eclipsed his administration’s policies for digital assets.
‘Trump appeals to the worst sides of the crypto market.’
— Gus van Rijckevorsel, Ultra
Now crypto has been swept up in the maelstrom along with most other markets — the tech-heavy Nasdaq, which has lost more than a quarter of its value in the last 11 weeks, is in a bear market.
The S&P 500 Index, the prime bellwether for US households, dipped into a bear market within minutes of its open on Monday.
No surprise, Trump’s Wall Street supporters are aghast at the carnage and are imploring the administration to reverse course or at least hit the pause button.
Even Elon Musk expressed hope for a “zero-tariff” situation between the US and the European Union.
Yet crypto voices say something deeper is at work here.
The Trump who promised to bring much desired regulatory clarity to the industry has given way to the president who pounces on opportunities to make easy money.
Market immaturity
When Trump rolled out his own memecoin back in January, that was a clear sign that he may not help an industry long synonymous with rugpulls mature into a mainstream asset class.
“Trump appeals to the worst sides of the crypto market,” said Gus van Rijckevorsel, the CEO of Ultra, a platform for gaming publishers, devs, and players.
“He has been perpetuating market immaturity by saturating it with tokens that hold no inherent utility, all in the name of a quick buck,” he told DL News.
“There needs to be an understanding in the markets that a real currency should provide: utility to buy goods and services, and the potential to offer profitability to generate a return.”
In other words, business, ideally done in a free market environment.
On Monday, such a notion seemed quaint as investors white knuckled a rollicking ride into the unknown.
— with reporting by Liam Kelly
Edward Robinson is the story editor for DL News. Contact the author at ed@dlnews.com.