The crypto market just suffered one of its worst days in months, and Donald Trump might have taken a hit too. In a video breakdown by The Bulwark, hosts Tim Miller and Catherine Rampell unpacked the crash and why the Trump family's deep crypto exposure makes this sell-off different.
Bitcoin's Record Daily Loss, TRUMP Coin Near Zero
Bitcoin slid toward $60,000, with realized losses hitting about $3.2 billion in a single day — the highest daily total ever recorded. It now sits 46% below its all-time high, back to levels seen in 2021. Ethereum lost 50% over six months. Dogecoin dropped 66% in a year.
The $TRUMP meme coin took the hardest hit. Currently trading at $3.33, it has plunged 95.58% from its all-time high just a year ago.
Treasury Secretary Rules Out Bailout, Rising Rates Pop the Bubble
Treasury Secretary Scott Bessent made it clear: the government is not coming to save crypto. That statement sent markets deeper into panic, triggering forced liquidations and stop-loss cascades.
The bigger problem is rising long-term interest rates. Rampell explained: "You want money to be really cheap... when long-term rates go up, that tends to be bad for asset bubbles." Cheap money fueled speculation; when borrowing gets expensive, meme coins break first.
Secret Deal With Abu Dhabi Royal Exposed
The Wall Street Journal reported that the Trump family's crypto exchange sold a 49% stake to an Abu Dhabi royal who serves as the country's national security chief. The deal remained hidden until journalists broke the story.
Rampell raised the concern: "We don't have a lot of visibility into those transactions and whether Trump and his family may be doing shady deals or selling off to enrich themselves."
Gold Rises While Bitcoin Crashes
While crypto crashed, gold kept climbing. According to Rampell, that gap challenges the idea that Bitcoin works as an inflation hedge. Gold has thousands of years of history, while crypto still behaves like a speculative risk asset tied to cheap money.
Retail investors bear the brunt. Rampell was blunt: "There are a lot of people who maybe lost their shirts who can't afford it." With political involvement in crypto markets, questions around transparency and investor protection will only get louder.