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Bitcoin dropped $39K amid declining Trump support, per Krugman's "unraveling of the Trump trade" theory.
Bitcoin plunged from $126,000 to about $87,000, wiping nearly $1 trillion from the market.
Nobel laureate Paul Krugman attributes the crash to the weakening of Donald Trump’s political influence, calling it the "unraveling of the Trump trade."
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.
As Trump’s approval and momentum declined, so did confidence in crypto.
While some blame broader economic factors like interest rates, Krugman’s view highlights a growing link between financial markets and political narratives.
Bitcoin bajó $ 39K en medio de la disminución del apoyo de Trump, según la teoría de Krugman de "desenredar el comercio de Trump".