The past few months have been disastrous for cryptocurrencies. Even after bouncing back a bit on Friday, bitcoin is now down almost 50 percent from its all-time high in October, and other cryptocurrencies—including well-established ones such as ethereum and solana—have fallen far further. Crypto winters are nothing new: The biggest drop in bitcoin’s history, in 2011, knocked 99 percent off its value. But this one feels especially painful, because it came at a moment when crypto enthusiasts thought they had finally made it.

Donald Trump’s election finally gave the industry a president who was avowedly crypto-friendly. Trump appointed regulators who, unlike those under Joe Biden, showed no interest in limiting crypto’s spread or…