How Trump's Political Uncertainty is Shaking Up Cryptocurrency Markets

On April 18, 2025, a tweet from AltcoinGordon captured the growing sentiment of uncertainty in the cryptocurrency markets due to political developments involving former President Donald Trump. The tweet stated, "Trump is bringing uncertainty to the markets, the macro doesn't look good here, I am selling and sitting in stables for a while." This sentiment reflects a cautious approach among some crypto investors.

The impact was immediate, as the total market capitalization of cryptocurrencies dropped by 3.2%, from $2.3 trillion to $2.23 trillion within a day. Notably, Bitcoin experienced a 4.5% decline in price, falling from $65,000 to $62,050, while Ethereum dropped 3.8% from $3,200 to $3,075. The trading volume for Bitcoin surged by 15% to $45 billion, indicating heightened activity and potential panic selling.

The stablecoin market also reacted, with Tether (USDT) seeing a 2% increase in trading volume to $50 billion, suggesting a flight to safety among investors. On-chain metrics for Bitcoin showed a 10% increase in active addresses, reflecting increased market participation during this turbulent time.

Interestingly, the total market cap of stablecoins rose by 5%, from $120 billion to $126 billion over the past week, aligning with the trend of investors seeking safer assets amid uncertainty. The Fear and Greed Index also indicated a shift towards fear, dropping from 55 to 48, signaling heightened apprehension among investors.

The tweet's influence extended to lesser-known cryptocurrencies as well. Fartcoin, for instance, saw a 2.5% drop in its price from $0.00000028 to $0.00000027, with trading volume increasing by 10% to $2.8 million, indicating a spike in interest following the tweet's release. This series of events underscores the profound impact that political developments can have on cryptocurrency markets.