Krugman: Bitcoin’s Fate Tied to Trump’s Declining Influence

Paul Krugman links Bitcoin’s price slump to Donald Trump’s declining political influence, arguing that the cryptocurrency’s value is now closely tied to Trump’s fortunes and pro-crypto policies.

Economist Paul Krugman has attributed Bitcoin’s recent price decline—nearly 30% from its October high—to the waning political influence and declining poll numbers of President Donald Trump. Krugman argues that Bitcoin’s fortunes have become closely tied to Trump’s pro-crypto stance, campaign promises, and family connections to the digital asset industry. He claims that as Trump’s popularity and political power diminish, Bitcoin’s value has suffered, describing the cryptocurrency as a “Trump trade” whose price reflects Trump’s political standing. Krugman also criticizes Bitcoin for its volatility, lack of practical use, and association with criminal activity, suggesting that its cult-like following may not be enough to sustain it if Trump’s setbacks continue. Despite these challenges, prediction markets still show optimism for Bitcoin’s future price, but Krugman remains skeptical of its stability and broader adoption.