"The past few months have been disastrous for cryptocurrencies. Even after bouncing back a bit on Friday, bitcoin is now down almost 50 percent from its all-time high in October, and other cryptocurrencies-including well-established ones such as ethereum and solana-have fallen far further. Crypto winters are nothing new: The biggest drop in bitcoin's history, in 2011, knocked 99 percent off its value. But this one feels especially painful, because it came at a moment when crypto enthusiasts thought they had finally made it."
"Donald Trump's election finally gave the industry a president who was avowedly crypto-friendly. Trump appointed regulators who, unlike those under Joe Biden, showed no interest in limiting crypto's spread or cracking down on crypto exchanges. In October, he pardoned the founder of the biggest crypto exchange, Binance, who had been convicted of violating U.S. law by failing to adequately prevent money laundering on the site."
Cryptocurrencies experienced a sharp decline, with bitcoin down nearly 50 percent from its October peak and other major coins falling farther. Historical crypto crashes occurred before, but the recent collapse felt particularly severe after a period of normalization and optimism. A more crypto-friendly political environment reduced regulatory pressure, including a high-profile pardon related to a major exchange. Broader access via exchanges and leveraged crypto ETFs increased retail and institutional participation. That greater integration into the financial system helped lift prices during the boom but also magnified volatility and accelerated the current sell-off.
Read at The Atlantic
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