Throughout 2025, we have witnessed the significant impact of Trump’s declarations on global markets, affecting the cryptocurrency sector considerably. Although the issues with digital currencies seem to have largely settled, developments in the macroeconomic landscape continue to reverse market trends. Bitcoin (BTC) 
$78,262 has lost the crucial support level of $108,000, increasing the risk of further declines.
What’s Behind Cryptocurrency Declines?
Cryptocurrencies have not been experiencing declines due to internal issues for some time. Past challenges such as the FTX exchange collapse, company bankruptcies, and major hacks are now historical events. Presently, factors like tariff developments, Federal Reserve announcements, Trump’s declarations, and geopolitical tensions are driving sell-offs. This pattern is reemerging now as well.
At the time of writing, China is preparing to implement indirect measures to curb advancements in artificial intelligence, citing sources that suggest Taiwan and Malaysia could face restrictions on AI chips.
“The Trump administration plans to restrict AI chip shipments from companies like Nvidia to Malaysia and Thailand, as part of an investigation into alleged semiconductor smuggling to China. According to sources familiar with the matter, the draft regulation prepared by the Department of Commerce aims to prevent China from obtaining advanced AI processors from Nvidia through intermediaries in the two Southeast Asian countries. This rule is not yet finalized and could be updated.”
BTC’s price has decreased, and the market is already pricing in fear ahead of Trump’s potential statements on this matter and any concrete actions from the United States. If Trump seizes the opportunity during holidays to shout about tariffs, the downturn could deepen further.
