Quickpost | Global Economy
The global crypto market has been hit by a sharp sell-off after a series of hardline political posts by U.S. President Donald Trump, sending Bitcoin down more than 25% and erasing all gains made since the start of his second presidency. By Monday noon (UTC), Bitcoin had fallen to around $42,000.
The decline was not limited to Bitcoin. In a single night, the broader crypto market lost over $800 billion in market value. Major altcoins including Ethereum and Solana also plunged, deepening fears of a wider market rout.
What Triggered the Crash?
Late Sunday, Trump posted several statements on his social media platform Truth Social, sharply criticising China. Referring to the Taiwan issue, he hinted at new tariffs on Beijing and wrote:
“America First means not one more dollar for crypto scams run by Beijing hackers.”
Because the comments were made while Asian markets were open, they triggered immediate panic selling. Many investors interpreted the remarks as a signal of tighter action against China-linked mining operations and offshore crypto exchanges.
Singapore-based crypto analyst Raj Patel said:
“This is close to a full-blown crash. Trump’s comments once again show that crypto markets are not immune to political risk.”
Impact in Bangladesh
The fallout has also reached Bangladesh, where crypto trading has reportedly grown by around 40% over the past year, mainly through international platforms and informal local channels. The sudden downturn has left many retail investors facing heavy losses.
Dhaka-based investor Ayesha Rahman said:
“I trusted Trump’s earlier pro-crypto stance and invested my savings. Now almost everything is gone.”
Analysts believe the situation may prompt Bangladesh Bank and other regulators to increase scrutiny, particularly over concerns about capital flight and high-risk investments.
Politics and Crypto: A Volatile Relationship
During Trump’s first term, promises of lighter regulation helped fuel a crypto boom, with Bitcoin reaching $69,000 in 2021. His return to power in 2025 revived optimism, especially after talk of a potential ‘Bitcoin Reserve’ in the United States.
That optimism has now reversed. Rising U.S.–China tensions, the Taiwan flashpoint, and Trump’s latest rhetoric have shaken confidence. The CoinDesk Market Index dropped 22% in a single day, marking its worst fall since the FTX collapse in 2022.
Shockwaves on Wall Street
The sell-off also rattled traditional markets. Shares of MicroStrategy, one of the largest corporate holders of Bitcoin, fell nearly 15%. In derivatives markets, speculation is growing that escalating trade tensions could push the Federal Reserve toward emergency measures to manage inflation risks.
Market experts are sending a clear message:
“Crypto remains deeply exposed to politics. Understanding risk and maintaining diversification are essential for survival.”
Investors worldwide are now watching closely for the next political signal. With U.S. midterm elections ahead and tensions over Taiwan still rising, volatility in the crypto market may be far from over.
