Charles Hoskinson, co-founder of the Cardano blockchain, has expressed disappointment in U.S. President Donald Trump’s impact on the crypto sector. Speaking at the Midnight Summit, he said that the administration, once expected to bring a “magical positive effect,” has proved “somewhat useless” for the industry.
Hoskinson noted that many in the community, including himself, believed Trump’s pro-crypto campaign rhetoric would drive long-term growth. Instead, he argued, the administration’s actions created irrational optimism and disrupted the traditional four-year market cycle. The community, he said, is now left to navigate the consequences and adjust to a new regulatory environment.
Market Stress Despite Pro-Crypto Messaging
Data from The Kobeissi Letter shows that the crypto market lost $1.1 trillion in capitalization over 41 days, with an average daily decline of roughly $27 billion. At the time of writing, the total market cap stands at $3.2 trillion, around 10% below post-crash levels recorded in early October, according to CoinGecko.
One of the triggers for the prolonged correction was Trump’s announcement of 100% tariffs on Chinese imports. Bitcoin fell to $111,000 soon after, while daily liquidations surged to $19.3 billion. What was expected to be supportive political messaging instead added a fresh layer of volatility.
Structural Weaknesses Deepen the Downturn
Analysts argue that the sector’s struggles reflect deeper structural factors. Institutional outflows reached $1.2 billion in early November, amplifying selling pressure. Excessive leverage — with widespread 20x to 100x positions — accelerated cascading liquidations, including three days with over $1 billion wiped out.
The market’s sensitivity increased sharply, with the Fear and Greed Index plunging to 10 points, a level associated with extreme fear. This occurred despite Bitcoin rising 25% since its April lows. Correlation breaks also emerged, with gold outperforming Bitcoin by 25 percentage points since October, while Ethereum fell 35% despite a broader rise in risk assets.
Some experts see this as a “structural bear phase,” where fundamentals are improving but market mechanics dominate short-term price action. The Kobeissi Letter suggests a bottom may be near, pointing to record global M2 liquidity of $137 trillion, Japan’s planned $110 billion stimulus, and expected “tariff dividends” in the U.S.
Investor Sentiment Weakens
Behavioral shifts are also visible. In October, Placeholder partner Chris Burniske warned that the sharp drop had “broken the crypto market for a while,” reducing the likelihood of a fast recovery in demand. Many investors, he said, have lost confidence in the current cycle and are waiting for a return to previous highs before re-engaging.
Burniske flagged concerns in gold, credit markets, and other macro indicators, suggesting equities would be “the last to get the message.” He expects a weak rebound and has shifted part of his own strategy toward “more cash.” According to him, Bitcoin would look attractive again near $75,000 or below, with $100,000 acting as a key level to watch.
Bitcoin is currently trading around $91,500, after briefly touching $90,000 on 18 November — its lowest point in seven months.