While the initial reaction to Donald Trump’s re-election was optimistic and generated a stock and cryptocurrency rally, Finbold research found that his inauguration triggered a period of stagnation and decline.
This trend is evident in the sharp decline in the number of Bitcoin (BTC) addresses holding more than $1 worth of the coin as they were, on February 18, 3.54 million fewer than on January 21 – one day after Trump returned to the White House.
The drop in the number of BTC millionaire wallets was starkest as the number fell by 22,279, meaning that the first four weeks of the new administration oversaw an average 795 daily decline.
On January 21, there were 157,563 addresses with between $1 million and $9.99 million worth of Bitcoin and 18,801 with a value greater than $10 million, while they numbered 138,693 and 15,392, respectively, on February 18.
Looking at all Bitcoin addresses, the average daily drop amounts to a staggering 126,262.
How the election pump turned into the inauguration dump
The shift in sentiment that followed inauguration day on January 20 can be traced back to a mix of factors in and outside the President’s control.
Swiftly after Trump took office, China’s novel artificial intelligence (AI) DeepSeek model was released, triggering a technology sector selloff that spilled over into the cryptocurrency market.
Furthermore, recent data showcased an uncomfortable rise in inflation in early 2025, providing additional uncertainty to the U.S. market, though Trump remained adamant it was the result of Joe Biden’s policy.
On the other hand, the new President contributed to the lacking image of digital assets with the release of Trump family-themed commemorative meme coins for his inauguration.
As Jordan Major, a co-author of the research, pointed out: “The rapid decline of Bitcoin millionaire addresses, over 22,000 lost since Trump’s return to the White House, signals a major shift in the crypto market. While Trump’s presidency initially fueled optimism, recent economic uncertainty and policy concerns have wiped out millionaire status for hundreds of Bitcoin holders daily.”
Finally, President Trump’s lack of decisive action in delivering on the long-hoped-for strategic Bitcoin reserve also harmed the cryptocurrency market’s optimism.
