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Crypto Bear Market Erases Trillions in Paper Profits as Trump's Holdings Draw Scrutiny

7/3/2026

A crypto bear market has wiped trillions of dollars in paper profits from the holdings of millions of investors around the world, according to reports, throwing into relief a stark divide between retail participants nursing losses and President Donald Trump's reported billion-dollar position in digital assets.

Retail Investors Absorb the Damage The breadth of the current downturn is global, with millions of everyday crypto holders sitting on unrealized losses as prices retrace from prior highs.

The scale of the paper-profit destruction — measured in the trillions — underscores how widely crypto exposure spread during the preceding bull run, leaving a large population of non-institutional investors on the wrong side of the move.

Bear markets in crypto are not unusual, but the current episode is notable for the number of participants it caught. Retail flows chased the rally higher; those same investors are now absorbing the reversal.

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