Donald Trump’s political struggles aren’t just rattling his party — they’re sending shockwaves through the cryptocurrency market. The president and his family have reportedly lost more than $1 billion in crypto ventures, and experts say the collapse is closely tied to Trump’s declining approval ratings.
Economist Paul Krugman has called the situation the “unraveling” of the so-called Trump trade. Earlier this year, the Trump family dived into meme coins and digital currencies, betting on a boom that now appears to have backfired. The Daily Beast reported that the losses have been staggering, with more than a billion dollars wiped from their crypto holdings.
Krugman points to a clear connection between Trump’s political setbacks and the recent slump in Bitcoin and other digital currencies. He explained in a Substack post, “Bitcoin’s price surged after Donald Trump won last year, and its recent plunge coincides with a series of Trump political setbacks. So how should we understand Bitcoin’s recent crash? Think of it as the unraveling of the Trump trade.”
The economist added that the president’s continued efforts to support the crypto industry are being undermined by his diminishing political clout. “Trump remains as determined as ever to reward the industry that made his family rich, and those around him are as determined as ever to make America safe for predators of all kinds. But Trump’s power is visibly diminishing, so the price of Bitcoin, which has in effect become a bet on Trumpism, has plunged.”
Krugman also addressed the question on many minds: is it really fair to link Trump’s political fortunes to cryptocurrency? His answer is blunt: “Is it a stretch to link Trump’s political woes to the price of crypto? No. As Josh Marshall often emphasizes, power is unitary. A weakened Trump is less able to work his will on all fronts, including his efforts to promote crypto.”
Meanwhile, Bloomberg’s analysis paints an even darker financial picture. The Trump family’s combined wealth has reportedly plunged from $7.7 billion in early September to $6.7 billion in November. That’s not just a market correction — it’s a political alarm bell. A shrinking fortune and a shrinking power base tend to go hand-in-hand.
Trump’s slipping power base is also drawing attention from political analysts. The New Republic suggests that next year’s midterms could deliver major gains for Democrats, while experts warn that Trump’s age and waning influence may reshape voter behavior in the 2026 elections.
For now, the crypto markets serve as a stark barometer of Trump’s political strength. And as his approval ratings fall, the price of digital currencies tied to his influence appears to be following suit.
