Cryptocurrency Market Shifts: The Trump Effect on Bitcoin Millionaires
Initial Optimism in the Crypto Market
The re-election of Donald Trump in 2024 initially fueled optimism in the cryptocurrency realm, leading to the creation of approximately 11,000 new Bitcoin (BTC) millionaires between October 7 and November 6. However, this enthusiasm was short-lived.
The Unexpected Downturn in 2025
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Despite the crypto bull market extending into early 2025, research from Finbold indicated an unexpected reversal following Trump’s return to the White House. The period from January 21, the day after Trump’s inauguration, to February 18 saw a significant drop in BTC addresses valued over $1 million, declining by 22,279.
Daily Decline of Bitcoin Millionaires
In the initial weeks of Trump’s second term, data sourced from BitInfoCharts through the Wayback Machine revealed an average daily reduction of 795 Bitcoin millionaire addresses. The number of addresses holding over $1 million in BTC fell dramatically from 157,563 to 138,693, and those with more than $10 million also saw a sharp decline, decreasing from 18,801 to 15,392.
The Broad Impact on Bitcoin Wallets
The downturn affected more than just millionaire wallets; it extended across all wallet sizes. As of the current analysis, there are nearly 3 million fewer addresses with balances between $1 and $9,999 compared to January 21, while addresses holding between $10,000 and $999,999.99 decreased by 641,489.
Total Address Reduction
Overall, the erasure of 3.54 million Bitcoin addresses with $1 or more signifies that Trump’s second administration oversaw the reduction of approximately 126,262 addresses daily. It’s crucial to recognize that a decrease in addresses doesn’t equate to the same number of traders being affected, as individuals may own multiple addresses, or multiple individuals may consolidate their resources into one.
From Election Optimism to Inauguration Uncertainty
The rapid shift from market optimism to uncertainty coincided with Trump transitioning from President-Elect to President. This was linked to a series of market shocks.
Market Disruptions and Global Tensions
Shortly after the inauguration, the release of DeepSeek, a novel Chinese AI model, prompted a massive selloff in the technology sector, which cascaded into the cryptocurrency market. Further uncertainty arose with Trump’s proposed tariffs targeting China, Mexico, and Canada, which impacted the broader financial ecosystem.
Inflation Concerns and Economic Policies
The early months of 2025 saw rising inflation figures, adding to market unease just days after Trump advocated for further interest rate cuts. Despite attributing inflation to Joe Biden’s policies, Trump’s actions and inactions might have indirectly contributed to the cryptocurrency market’s slowdown.
The Role of Trump in the Cryptocurrency Market Stagnation
The Trump family introduced a collection of self-themed meme coins during the inauguration. Although not as detrimental as typical ‘pump and dump’ schemes and similar to commemorative coins, these releases raised concerns amid a rise in fraudulent digital asset launches.
Recent Cryptocurrency Launch Controversies
High-profile cases such as Haliey Welch’s controversial cryptocurrency, ‘Hawk Tuah Girl,’ and Argentinian President Javier Milei’s tentative promotion of a similar asset highlighted this trend.
The Unfulfilled Promise of a National Bitcoin Reserve
Prior to the election, Trump emphasized the establishment of a national Bitcoin reserve. However, this promise remains unfulfilled, leaving the future of such a policy uncertain.
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