Summary
- Analysts said the recent Bitcoin price plunge coincided with President Donald Trump's weakening political influence.
- Professor Paul Krugman said this price collapse is the dismantling of the 'Trump trade', and that Trump and his family have direct interests in virtual asset investments.
- He reported that despite Trump's crypto industry-friendly policies, his influence has weakened and the Bitcoin price has plunged.
Analysts have suggested that the recent bitcoin price plunge has coincided with signs of a weakening political standing for U.S. President Donald Trump.
On the 2nd (local time), Fortune reported that Paul Krugman, a Nobel laureate and professor at the City University of New York, wrote on his Substack, "The recent bitcoin price collapse can be seen as the dismantling of the 'Trump trade.'"
Bitcoin reached an all-time high of $126,000 last month, then plunged within a month and has recently hovered around $86,000. The crypto market correction of about $1 trillion is said to have reduced the Trump family's assets by about $1 billion.
Krugman noted that President Trump has long been friendly toward the cryptocurrency industry and that there are significant direct investments at the family level. He said, "Trump still seeks to reward the virtual asset industry, but his political influence is clearly weakening," and "Bitcoin's price was effectively a bet on Trumpism, and as his power waned, the price plunged."
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.![[Market] Bitcoin falls below $82,000...$320 million liquidated over the past hour](https://media.bloomingbit.io/PROD/news/93660260-0bc7-402a-bf2a-b4a42b9388aa.webp?w=250)
