As so often in the past, crypto hype is currently followed by a phase of disillusionment. Around the time of the US presidential election, it was still a “golden age” for coins and tokens. For example, Bitcoin, Ethereum and Shiba Inu each gained over 40% in value monthly in November 2024, and Dogecoin even achieved a gain of around 200%.
Since the beginning of 2025, however, Bitcoin, Ether, and numerous meme coins have plummeted in value, and the euphoria of the past few months has evaporated. The Bitcoin News readers are, of course, aware that cryptocurrencies are generally highly speculative and not suitable for long-term wealth creation. However, some crypto speculators may still be wondering whether they could be facing a prolonged dry spell – or whether it’s worth getting involved now.
Massive losses for Bitcoin, Ether, and meme coins
A look back: On January 20, 2025, the day of US President Donald Trump‘s inauguration, the Bitcoin price reached a new all-time high of $109,000. But just two months later, it was trading around 22% lower at around $85,000. The second-largest cryptocurrency, Ethereum, has also fallen sharply: After peaking at over $3,500 in early January, its price fell by more than 40% to around $2,100 (as of March 24, 2025).
Meme coins, designed as “fun currencies,” have also been affected by the market correction. Dogecoin (DOGE), often promoted by Elon Musk, slid by around 40% over the same period, and the US President’s TRUMP coin plummeted by over 55% from a high of $8.50.
Crypts Suffer from Uncertainty
Several factors triggered this downward trend, with disappointment with Donald Trump’s policies likely tipping the scales. While he displayed an extremely crypto-friendly stance during the election campaign, the far-reaching measures announced failed to materialize. In particular, the hoped-for US national Bitcoin reserve turned out to be a disappointment: Instead of buying new holdings, the government simply transferred confiscated Bitcoin to the reserve. This news was a signal for many investors to sell.
Macroeconomic factors are also weighing on the crypto market. The ongoing uncertainty surrounding the US Federal Reserve’s interest rate policy is causing investors to be cautious. At the same time, institutional investors are increasingly withdrawing capital from Bitcoin ETFs – in the past six weeks alone, the loss amounted to around five billion dollars. This development intensifies the selling pressure and could lead to a further decline in the crypto price.
Of course, no one can currently predict what the future holds for Bitcoin and other cryptocurrencies. However, one thing should be clear to every investor: cryptocurrencies or even meme coins are not suitable as a foundation for wealth creation due to their extreme volatility and the potential for total loss.
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