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flag Bitcoin dropped $39K amid declining Trump support, per Krugman's "unraveling of the Trump trade" theory.

flag Bitcoin plunged from $126,000 to about $87,000, wiping nearly $1 trillion from the market. flag Nobel laureate Paul Krugman attributes the crash to the weakening of Donald Trump’s political influence, calling it the "unraveling of the Trump trade." flag He argues Bitcoin’s rise was tied to Trump’s support for crypto, including proposals for a federal Bitcoin reserve and personal investments, making the asset a symbolic bet on Trump’s political future. flag As Trump’s approval and momentum declined, so did confidence in crypto. flag While some blame broader economic factors like interest rates, Krugman’s view highlights a growing link between financial markets and political narratives.

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