Analyzing the Impact of Donald Trump’s Presidency on the Cryptocurrency Market
The anticipation surrounding Donald Trump’s return to the White House brought with it aspirations for a robust cryptocurrency market and economic prosperity. However, the reality since his inauguration on January 20 has been marked by significant upheaval.
Insights from Finbold’s Q1 2025 Cryptocurrency Market Report
According to Finbold’s Q1 2025 Cryptocurrency Market Report, the number of Bitcoin (BTC) millionaire addresses witnessed a nearly 20% decline from the day Trump assumed office to the end of March. On January 20, 2025, there were 176,364 BTC addresses boasting over $1 million in value. By the conclusion of the first quarter, that figure had plummeted to 141,627, as reported by Finbold using data from BitInfoCharts and the Internet Archive.
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Significant Decline in Millionaire Addresses
Over a span of just two months, 34,737 millionaire Bitcoin addresses vanished. Specifically, wallets holding assets between $1 million and $9.99 million decreased by 30,000, while those possessing over $10 million dropped by 4,737.
Examining Trump and Cryptocurrency Dynamics
The contrast in the number of Bitcoin millionaires from Trump’s inauguration to the end of Q1 highlights the distinction between market expectations and reality. By March 31, there were 13,942 fewer BTC addresses with over $1 million since January 1, decreasing from 155,569 to 141,627. However, the optimism preceding Trump’s White House return was evident with an increase of 20,795 BTC millionaires on January 20 compared to the beginning of the year.
Early Year Trends and Accumulation
The early weeks of 2025 showed a continuation of the upward trend observed since Q4 2024. Finbold’s research from November 6 revealed the creation of 11,000 new BTC millionaires in just one month, starting from October 7.
While Trump’s presidency resulted in the disappearance of approximately 20% of Bitcoin millionaire addresses in Q1, erasing 34,737, his re-election also contributed to the emergence of 43,816 new addresses, marking a 33% increase.
Despite the volatility observed by the end of Q1 2025, there were 9,079 more BTC millionaires than on November 6, 2024, indicating some residual positive impact from Trump’s presidency.
Understanding the Reasons Behind the Loss of 34,000 Bitcoin Millionaires
It is important to recognize that the count of Bitcoin millionaire addresses isn’t a precise measure since an investor can own multiple addresses, and multiple traders might consolidate their resources into a single one. Furthermore, the ebb and flow of BTC holders with over $1 million—or any amount—does not inherently signal new market entries or exits.
The valuation of digital assets significantly influences investors’ wealth, and Bitcoin’s price trajectory largely reflects the changes in the number of millionaire addresses. On November 6, 2024, Bitcoin traded at $75,623. It appreciated by 24.81% to reach $94,386 by January 1, 2025, and then increased by 7.82% to $101,768 by Trump’s inauguration. However, BTC’s price experienced an 18.92% decline between the inauguration and March 31, concluding Q1 at $82,512.
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