Пол Кругман: Нестабильность биткоина — результат ослабления влияния Трампа Headline: Paul Krugman: Bitcoins instability is a result of Trumps waning influence

The decreasing popularity of U.S. President Donald Trump has had a detrimental effect on the leading cryptocurrency. This was stated by Nobel laureate in economics and digital asset critic Paul Krugman.

*»The price of Bitcoin soared following Trump’s victory last year, while the recent decline aligns with a series of his political setbacks,»* he noted in a Substack publication.

The political figure made digital assets a focal point of his electoral campaign, promising to support the industry and transform the United States into the world’s «crypto capital.»

Under Trump’s presidency, the regulatory stance towards cryptocurrencies indeed shifted. Bitcoin proponent Paul Atkins was appointed head of the SEC, and he identified the creation of clear and transparent regulations for the digital asset market as one of his main priorities.

The Commission dropped its claims against several crypto projects, including Ripple — in August, the two parties reached a settlement, ending a five-year dispute.

The U.S. President signed the GENIUS Act, which sets rules for stablecoins, and granted clemency to Silk Road dark web marketplace creator Ross Ulbricht and Binance founder Changpeng Zhao.

A pivotal event was the direct involvement of Donald Trump and his family in the digital asset sector: they gained control of World Liberty Financial, created meme coins TRUMP and MELANIA, and entered the mining business with American Bitcoin, among other ventures.

Earlier, an investigation by the Financial Times revealed that the Trump family made over $1 billion from cryptocurrency projects.

*»Why has Bitcoin become a bet on Trump? Partly because Trump, whose family received massive bribes from crypto industry players, rewarded those investments with pro-crypto policies,»* emphasized Krugman.

He remarked that digital assets are becoming «tools for financial predators, and the Trump administration has been extremely favorable to them.»

Krugman characterized the recent Bitcoin crash as a «turning point for the Trump bet.» He noted that the U.S. President still seeks to support an industry that has benefited his circle and to provide favorable conditions for «financial predators.» However, the influence of the White House is gradually diminishing, according to the expert.

*»Since spring, Trump has received very low ratings in surveys, and his net approval rating has significantly decreased over the past month. While he claims to have the highest numbers of his political career, it’s unclear which survey he’s referring to, if any,»* he added.

Currently, the politician’s net rating stands at -19%: 38% approve of his actions, while 57% disapprove, and 4% are undecided.

All of this has led to a reduced willingness among Republican congressmen to offer unwavering support to the President. Concurrently, doubts among Trump supporters have been rising due to increasing scandals surrounding his possible connections to Jeffrey Epstein.

*»Is it a stretch to link Trump’s political troubles with cryptocurrency prices? No. As Josh Marshall frequently emphasizes, power is unified. A weakened Trump is less capable of imposing his will on all fronts, including his efforts to promote digital assets,»* wrote Krugman.

In conclusion, he underscored that the falling Bitcoin price is an indicator of the decreasing dominance of the U.S. President over the Republican Party.

At the time of writing, the leading cryptocurrency is trading around $91,600. Over the past day, the asset has gained 5%, recovering from local lows around $80,000.

It is worth noting that Cardano founder Charles Hoskinson expressed his disappointment in Trump’s impact on the crypto market, stating that the President’s administration has been «somewhat ineffective» for the industry.