Since Donald Trump’s second term began, the cryptocurrency market, including Bitcoin (BTC) and Ethereum (ETH), has underperformed compared to gold, silver, and U.S. stocks. The anticipated boost from crypto-friendly policies hasn’t materialized in market performance, resulting in divergent returns across asset classes.
According to Rand Group, a crypto trading and investment firm, Bitcoin has plummeted 41%, Ethereum 45%, and other altcoins a staggering 80% since Trump’s second inauguration.
In stark contrast, silver has surged 123% and gold 65% during the same period. Major U.S. indices have also shown robust growth, with the Nasdaq up 42%, Russell 2000 up 35%, and S&P 500 gaining 30%.
Notably, Bitcoin, often touted as digital gold due to its limited supply, has declined while physical gold and silver prices have soared, painting a contrasting picture. The upward trend in U.S. stocks, typically considered risk assets, further underscores the crypto market’s relative underperformance.
This trend seems at odds with the Trump administration’s series of crypto-friendly policies implemented since taking office.
Upon his inauguration in January 2025, Trump signed an executive order aimed at bolstering U.S. leadership in digital finance. The order supports the legitimate use and growth of digital assets and blockchain technology while safeguarding individuals’ rights to self-custody their crypto holdings.
In March, he signed another executive order establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile. This initiative focuses on managing Bitcoin acquired through government seizures as national reserves.
However, the Strategic Bitcoin Reserve doesn’t involve large-scale market purchases of Bitcoin; it primarily utilizes existing government holdings. Any further acquisitions are set to be budget-neutral, limiting immediate new buying pressure in the market.
July 2025 saw the enactment of the GENIUS Act, which outlines a regulatory framework for stablecoins, accelerating the integration of cryptocurrencies into the U.S. financial system.
Despite these favorable policy developments, the crypto market has remained bearish. Analysts suggest that expectations for Trump’s crypto-friendly policies were largely priced in before his inauguration.
Indeed, Bitcoin briefly touched 109,000 USD on Trump’s inauguration day, January 20, 2025, marking an all-time high. Trump’s campaign promises to make the U.S. the crypto capital of the world and plans for a strategic Bitcoin reserve had fueled hopes of regulatory easing and institutional inflows, driving prices higher.
Post-inauguration, market watchers note that actual fund flows and liquidity have become more influential than policy announcements in determining prices. While crypto-friendly policies may improve the regulatory landscape and promote mainstream adoption, translating these changes directly into new demand for Bitcoin and altcoins remains challenging.
Kim Min-seung, head of the Korbit Research Center, attributes the persistent weakness in crypto sentiment since last October’s sharp decline to a combination of factors. These include capital rotation into semiconductor and AI stocks, macroeconomic headwinds like geopolitical tensions and high interest rates, and psychological factors related to Bitcoin’s four-year halving cycle.
Regarding altcoin weakness, Kim added that despite White House regulatory reform pledges, uncertainties around securities classification persist, and the Clarity Act remains unpassed. These factors, coupled with a perceived lack of innovation in the crypto space, have contributed to the ongoing market slump.