Why Is Bitcoin Down? Blame Trump, Says Economist Paul Krugman
Paul Krugman, a Nobel Prize-winning economist and long-time critic of Bitcoin, argues that President Trump’s return to office and pro-crypto stance initially fueled Bitcoin’s surge to all-time highs, but Trump’s recent drop in popularity has contributed to a steep decline in Bitcoin’s price. Krugman asserts that Bitcoin has effectively become a proxy for confidence in Trump’s leadership, as Trump’s administration has favored crypto-friendly policies and received substantial donations from the industry, including involvement from his family. Despite pro-crypto legislation and Trump launching a Solana-based meme coin, Bitcoin’s price has experienced high volatility in 2025 due to trade disputes and market liquidations, dropping nearly 30% from its highs. While some analysts believe Bitcoin could enter a bear market, prediction market users remain optimistic about a possible rebound. Krugman maintains that Bitcoin has not achieved meaningful real-world utility, functioning more as a speculative, volatile asset than as money or a hedge against inflation.
