Trump Tariffs Trigger 2025 Crypto Market Crash
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 28 2025- Market Crash: In Q1 2025, the crypto market crashed due to Trump's tariff policies, with total market cap plummeting from $3.6 trillion in mid-January to $2.42 trillion by April 9, resulting in a loss of approximately $1.24 trillion, highlighting the significant impact of macroeconomic factors on the market.
- Liquidity Shock: The initial crash caused a severe liquidity flush as investors pulled funds to avoid risk, exacerbating market instability and reflecting the market's sensitivity to macroeconomic changes.
- Second Crash: Despite a recovery from April to August, fears of renewed tariff wars led to the second crash in 2025, with total market cap dropping from $4.28 trillion on October 7 to $2.89 trillion by November 22, a loss of $1.39 trillion, indicating the market's high sensitivity to policy shifts.
- Macroeconomic Impact: In Q4 2025, despite rate cuts in the U.S., rising inflation and unemployment led investors to adopt a cautious stance, demonstrating the dominant role of macroeconomic factors in the crypto market.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
