I think back to Sarah, the wide-eyed 23-year-old I met one afternoon at a coffee shop downtown. A new graduate weighed down by student loan debt, she viewed crypto as her path to financial independence. Having basked in the glory of the pro-crypto optimism that surrounded Trump’s inauguration with plans to dump her employee retirement savings into Bitcoin. She was hellbent on being a homeowner in five years. Now, looking at her rapidly shrinking portfolio, she’s scared to death. Those dreams are disappearing almost as quickly as the total market cap of all altcoins. So, is this the ‘Make America Great Again’ fulfillment she signed up for?

Did Trump Betray Gen Z's Trust?

Let's be brutally honest. All of that would have added up to a genuine Trump-friendly crypto boom, and the early wave of excitement was palpable. With all that ferment came headlines, speculation about loosening regulations, and a lot of people—including Sarah—took the plunge. What happened? The music stopped. Bitcoin’s price has collapsed nearly a quarter since peaking on January 20th. All at once, the bullish dreams turned into the stark, bitter truth of an unfolding crypto winter.

It’s tempting to shrug this off as simply another market correction, a coincidence due to the normal up and down cycle. For Gen Z, this is more than a driving factor reflected in a bank account balance. It’s the story of deferred dreams, crushed aspirations, and the rising anger and disappointment with a never-ending system that feels like it’s stacked against them. The once popular crypto narrative — of its deed as a democratizing force, of an alternative to traditional financial institutions — is facing the music.

Coinbase's research echoes this sentiment. Their global head of research, David Duong, is setting the scene for a bear market. One of the biggest indicators, the 200-Day Moving Average, is running red hot. Duong is reluctant to announce a full-blown “crypto winter,” but the indicators are grim. Investors are running for the hills, risk is toxic right now, and altcoins are getting crushed. The total crypto market cap excluding Bitcoin remains a crushing 41% below its peak in December of 2024.

It's not just about the numbers. It's about the broken promises. It’s not just about feeling misled. It’s about the subjective feeling of being misled, of being sold a dream that metamorphosed into a nightmare.

Trump's Policies Fueled The Fear?

Here’s where the discussion gets spicy, if not downright prickly for some. That was the first time Trump signaled support for crypto at all: that really turned heads. His economic policies overall have cultivated a highly regrettable climate of doubt. While his fiscal tightening and particularly tariff policies have created a ripple effect. They are affecting all sectors of the economy, from established markets to the emerging market of digital assets. The market detests uncertainty, and by taking these seemingly random and arbitrary steps, Trump has loaded up the global economy with a truck full of it.

Imagine a seesaw. On one side, you have the promised benefits of loosening up crypto regulations. On one side of the scale, you’ve got the destabilizing effects of protectionist trade policies. The latter by far outweighs the former, resulting in a net negative impact on the crypto market.

Venture capital investment in crypto is down 50-60% from the peak of the current 2021-22 cycle. That’s an enormous collapse, indicating a dramatic lack of confidence in the long-term prospects of the market. It’s a canary in the coal mine that should be alerting us to deeper issues.

Here's the unexpected connection: This isn't just about crypto. It’s about the structural economic inequality that has infected our country. Gen Z is feeling the burden of student loan debt and an unforgiving job market. Looking for alternatives, they found their answer in crypto. They didn’t ask for much, just that they be given a level playing field, an opportunity to build wealth. But rather than making the progress that they should be, they’re getting peppered on all sides by macroeconomic forces outside of their control.

Can We Avert A Crypto Winter Repeat?

So, what can we do? We just cannot afford to sit back and watch Gen Z’s dreams get deferred. We must hold our leaders accountable and push for policies designed to protect young investors.

This isn't just about saving crypto. It's about saving a generation. It’s a common-sense move, and it’s all about giving our young people an equitable shot at developing a beneficial secure future. It’s about making sure our elected officials are required to deliver on their commitments.

  • Demand stronger crypto regulation: We need clear rules of the road to prevent fraud and protect investors.
  • Advocate for economic policies that support young people: This includes addressing student loan debt and creating more job opportunities.
  • Explore alternative economic models: We need to move beyond the boom-and-bust cycles of capitalism and create a more equitable system.

Not for Sarah, and the thousands of others like her who have gone before her that had the audacity to imagine a new future. Let's not let their hopes fade away. Together, let’s continue to work to advance a more just and equitable world, where every child has the opportunity to reach their full potential. As much as the fear of a new crypto winter is understandable, so too is the power of collective action. Hopefully we can use that power together to create a future that’s brighter for Gen Z – and for all future generations.

Even if that recovery happens by the third quarter of 2025 – which certainly isn’t guaranteed – we can’t afford to wait.

The potential recovery by the third quarter of 2025 is not guaranteed, we need to act now.