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Krugman Says Bitcoin’s Slide Marks the Unraveling of a ‘Trump Trade

Bitcoin has fallen about 30% from its October peak to the high $80,000s.

Overview

  • Paul Krugman argues Bitcoin’s decline reflects waning presidential clout after a run-up he links to pro-crypto policies and Trump-family interests.
  • The White House rejected that framing, with spokesperson Kush Desai saying it is wrong to attribute price moves to non-economic factors.
  • Bitcoin is changing hands around $87,000 to $90,000 after a low near $81,000 last week, down from a record close to $126,000 in October.
  • Cited supportive signals include an executive order permitting retirement crypto investments and the presidential pardon of Binance founder Changpeng Zhao.
  • Crypto markets have reacted to presidential rhetoric and actions, including an October 10 episode with roughly $19 billion in liquidations after a threat against China.