The Crypto Rollercoaster: How Politics and Power Plays Shaped the Market

Charles Hoskinson, the mastermind behind Cardano, has had a rough ride in the crypto world. Over the past four years, he's seen his investments drop by a staggering $2. 5 billion. But he's quick to point out that it's not the tech that's to blame. He believes it's the government's heavy hand that's been stirring up trouble in the market. The crypto community was buzzing with excitement when Trump first took office. They thought it would be a big win for their investments. But instead of a bull market, they got a whole lot of chaos. Most cryptocurrencies took a nosedive, dropping 40-50% in value. Hoskinson even joked that the market felt like Japan in 1946, post-war and in shambles. Things went from bad to worse when Trump decided to launch his own meme coin. Hoskinson called it a strategic blunder. It turned crypto into a political hot potato, making it nearly impossible to pass any meaningful legislation. Plus, it could have been a goldmine if done right, with proper regulations in place. But instead, it just handed the Democrats a gift they could use in their campaigns.The retail investors are feeling the pinch too. Many are down 70-80% on their investments and can't justify putting more money into crypto. Hoskinson even joked about his wife threatening to divorce him if he kept buying crypto, as his predictions kept falling flat. The market did see a bit of a recovery in 2025, but it was far from even. Institutions poured money into Bitcoin through ETFs and structured products, driving up its value. But the altcoin space? It stayed stagnant, left in the dust. Hoskinson's $2. 5 billion loss is a stark reminder that crypto is far from a sure bet. He's pushing back against the idea that wealthy founders can just brush off such losses. The Genius Act that passed was a big letdown, favoring banks and stablecoin issuers but doing little for DeFi or layer-one protocols. It's a bitter irony, Hoskinson points out, that everyone bought Bitcoin to avoid Wall Street's control, only to see institutions hold all the Bitcoin on behalf of others. This year is make or break for crypto. Will Wall Street take over completely, or will the retail revolution happen with the fourth generation, bringing the market back to its decentralized roots? Only time will tell.