Bitcoin News Update: With Trump's Crypto Faltering, Investors Turn to Stablecoins for Security

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Bitcoin News Update: With Trump's Crypto Faltering, Investors Turn to Stablecoins for Security

Bitget-RWA2025/11/24 09:24

By:Bitget-RWA

- Trump's crypto investments lost $1B as ABTC and TMTG collapsed, prompting a shift to stablecoins exceeding $300B market cap. - Trump Media's $250M Bitcoin investment initially boosted shares but was overshadowed by broader crypto market declines. - SEC probes and central bank warnings highlight risks in politically connected crypto projects and stablecoin redemption vulnerabilities. - Despite losses, Trump family members remain bullish on Bitcoin, while DOGE meme coin surged post-program termination. - M

Donald Trump's entry into the cryptocurrency sector has resulted in a $1 billion reduction in his and his family's wealth, prompting a surge in stablecoin investments as market participants move away from high-risk assets. The Trump-themed

memecoin

American Bitcoin

Corp. (ABTC), and

Trump Media

& Technology Group (TMTG) have all experienced significant declines, with the family's crypto-related net worth falling from $7.7 billion to $6.7 billion

as reported by the Bloomberg Billionaires Index

. This downturn has accelerated a widespread move toward stablecoins, which now boast a market cap surpassing $300 billion

as investors look for safety from speculative cryptocurrencies

In January, Trump Media, which operates Truth Social, revealed the launch of Truth.Fi,

a financial technology platform providing crypto services and tailored ETFs

, marking a bold step into digital finance. The firm invested $250 million with Charles Schwab to buy

Bitcoin

and other digital currencies, a decision that initially sent

DJT

shares up by 10%. Yet, the broader slump in crypto markets has since overshadowed these gains,

with Trump's memecoin dropping 25% in value since August

and ABTC losing half of its worth.

Bitcoin News Update: With Trump's Crypto Faltering, Investors Turn to Stablecoins for Security image 0

Regulatory concerns have added further uncertainty. Alt5 Sigma, a partner in Trump's World Liberty Financial project,

is under SEC investigation for inconsistencies in its disclosure

regarding a CEO suspension, raising doubts about regulatory compliance in politically linked crypto ventures. At the same time, central banks have issued warnings that mass stablecoin withdrawals could pose systemic threats similar to the 2008 financial meltdown,

with the Dutch National Bank warning that a "fire sale" of U.S. Treasuries

could occur if confidence collapses.

The shift toward stablecoins has become increasingly evident. Bluwhale, a DeFi company,

has launched an AI-powered Stablecoin Agent

to enable investors to automate their allocations among dollar-backed tokens, highlighting the rising appetite for stable assets. Both retail and institutional investors have gravitated toward stablecoins such as

USDT

and

USDC

with trading statistics indicating a clear move away from speculative coins

. The highly publicized losses suffered by Trump have further reinforced caution among new entrants to the crypto space.

Despite the ongoing challenges, the Trump family remains optimistic. Eric Trump, whose American Bitcoin controls 4,004 BTC valued at $350 million, recently encouraged investors to "buy the dip" and reaffirmed his prediction that Bitcoin could reach $1 million,

though he noted it might take "several years"

. In a separate development, the now-defunct Department of Government Efficiency (DOGE),

a Trump-Musk collaboration designed to cut federal expenditures

, has seen its related

meme

coin rise in value despite the initiative's early end.

The unpredictable nature of the crypto market highlights the dangers of investments driven by celebrity influence. As regulators and central banks intensify their focus on stablecoin operations, the industry's future will depend on finding a balance between innovation and systemic protection. For now, the Trump crypto

saga

stands as a vivid example of the sector's inherent unpredictability.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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- JPMorgan's closure of Strike CEO Jack Mallers' accounts contradicts Trump's August executive order banning crypto "debanking," sparking regulatory scrutiny. - Mallers criticized the lack of transparency, noting JPMorgan cited "concerning activity" without specifics and warned against future account access. - Industry experts argue such actions risk pushing crypto innovation to unregulated markets, undermining U.S. financial leadership and democratic systems. - The incident highlights contradictions in JP

Bitget-RWA•2025/11/24 09:24

Investors Abandon HBAR Due to Instability, Turn to Small-Cap Options

- HBAR price collapsed below $0.1440, triggering bearish signals as key support levels failed to hold amid surging trading volume. - Zero-volume trading halts and distribution patterns highlight liquidity risks, with critics questioning market depth infrastructure. - Investors shift toward low-cap alternatives as HBAR's volatility contrasts with gains in fintech (SoFi +87.7%) and space-tech (BlackSky $71.4M revenue). - Analysts warn further downside to $0.1340 remains likely without institutional support,

Bitget-RWA•2025/11/24 09:24

Investors Abandon HBAR Due to Instability, Turn to Small-Cap Options

ECB Cautions That Fluctuations in Tech and Crypto May Trigger a Market Crash Similar to 2000

- ECB warns U.S. tech and crypto volatility risks triggering a 2000-style market crash, citing sharp asset corrections and AI-driven valuation fragility. - ECB officials stress central banks must retain rate-cut flexibility amid rising risks, as crypto outflows and equity inflows highlight market divergence. - JPMorgan analysis flags crypto panic-selling risks spilling into broader systems, while MSCI warns a 63% sector collapse could follow AI confidence loss. - ECB and BIS caution stablecoin growth threa

Bitget-RWA•2025/11/24 09:06

ECB Cautions That Fluctuations in Tech and Crypto May Trigger a Market Crash Similar to 2000

Bitcoin Updates Today: Leverage and ETF Withdrawals Drive the "Major Crypto Collapse of 2025"

- Bitcoin plunged to $80,600 in November 2025, marking its worst monthly drop since 2022, with $1.2T in market value lost. - The "Great Crypto Crash" was driven by ETF outflows, leveraged liquidations, and global risk aversion, dragging Ethereum and altcoins to multi-month lows. - Structural factors like $19B in October leveraged losses and $3.8B ETF outflows amplified the downturn, while macro risks like Fed policy uncertainty worsened sentiment. - Analysts remain divided: some see institutional BTC hoard

Bitget-RWA•2025/11/24 09:06