"The fact that BTC is now lower than it was before the 2024 election is significant in two ways. It shows the limits of political favor — all the boasts about making American a crypto superpower, all the deregulatory talk and pardons for cryptocriminals, in the end couldn’t defy gravity."
~ Paul Krugman
"But it also means that everyone who bought Bitcoin in the belief that Trump would make Bitcoin greater than ever has lost money, in many cases a lot of money. So this is another case of ETTD: everything Trump touches dies.
Finally, this crash may have political consequences."
"At least some young men supported Trump because they believed that he would enhance their crypto investments, and have remained favorable because he seemed to be delivering. I don’t know how many bitterly disillusioned bros there will be now, but there will be some."
"Tim Miller and Catherine Rampell give their takes on the crypto crash, why Bitcoin and meme coins are plunging, and what the sell-off says about speculation, interest rates, and the broader economy. They break down why crypto hasn’t held up as an inflation hedge, how rising rates are squeezing risky assets, and why Trump-world’s deep exposure to crypto and speculative stocks suddenly looks a lot more precarious."
#crypto #bitcoin #Trump #economy #market
/6
https://www.thebulwark.com/p/trumps-crypto-grift-is-imploding
Philip Gourevitch responds to the New York Times headline which — predictably — frames the crypto crash as something happening "despite" Trump's support:
"Despite? Or because there is no surer indicator that something is a scam?"
#crypto #bitcoin #Trump #economy #market #NewYorkTimes
/7
https://bsky.app/profile/pgourevitch.bsky.social/post/3me63ghqy3s2m
"Cryptocurrencies are crashing right now. You love to see it. A few months ago, the price of bitcoin was close to $125,000. Last night it hit a low of $60,000. It has bounced back to around $70,000 now. ...Paul Kedrosky flagged yesterday afternoon that the broader crypto ecosystem has shed $2 trillion."
~ Dave Karpf
#crypto #bitcoin #Trump #economy #market
/8
https://davekarpf.substack.com/p/on-crypto-crashes-and-fake-money
"When we say $2 trillion was lost from the crypto ecosystem, we should also be clear about where it went. It went nowhere. That money was never real to begin with. …
My hunch is that the current crypto crash is tied to the AI bubble. The price of bitcoin & other cryptocurrencies has been backstopped by a lot of very rich tech and finance people, who keep the whole system afloat by providing liquidity when it falls below a predetermined threshold."
