Cryptocurrency markets entered 2025 with strong momentum as the Trump administration and a Republican-led Congress advanced policies favorable to digital assets. New leadership at financial regulators and the GENIUS Act for stablecoins helped bring parts of the industry closer to the U.S. financial system. Bitcoin nearly doubled from its post-election level to an all-time high around $126,000 in October. The rally reversed quickly, with bitcoin later trading near $87,600, about 30% below its peak. Other tokens followed a similar path.
The slide began on Oct. 10 after President Trump threatened an additional 100% tariff on Chinese imports, prompting investors to cut exposure to risk assets. Crypto had also become heavily levered, with traders borrowing against existing coins to buy more; when prices dropped, margin calls and forced selling amplified losses. NPR noted that bitcoin remained down for the year while major U.S. stock indexes finished 2025 with double-digit gains. Supporters point to proposed market-structure legislation that could clarify which regulator oversees large parts of the sector and to growing interest from major financial institutions. Critics argue that deeper integration could widen the impact of the next downturn. Some critics warn that closer links to banks could transmit crypto shocks widely, raising systemic and consumer-protection concerns.
Why it matters
The episode shows how regulatory progress can coexist with volatility, making leverage and macro-policy shocks central risks for crypto’s path into mainstream finance.
Source Attribution
Source: NPR | Adapted & summarized
Published on: 11 January 2026
Category: Finance
Region: USA
