Renowned economist Paul Krugman has attributed the recent decline in Bitcoin prices to the political challenges faced by U.S. President Donald Trump. According to Krugman, it is no coincidence that Bitcoin’s value is falling as Trump encounters difficulties in the political arena. Bitcoin, a decentralized digital currency that operates independently of government or bank oversight, has gained significant prominence in financial markets over recent years. Its price volatility is influenced by global financial uncertainties and various political and economic factors. The Trump administration had adopted a relatively lenient stance toward cryptocurrencies, which had boosted investor interest in Bitcoin and other crypto assets. However, recent political instability and a decline in Trump’s popularity during the election campaign have made investors cautious, leading to a bearish trend in the crypto market. Experts note that political instability can impact cryptocurrency prices because these markets differ from traditional financial systems and tend to be more sensitive. If the political situation remains uncertain, further declines in Bitcoin and other cryptocurrencies are possible. Additionally, potential changes in global financial policies and regulatory frameworks may also affect the future of the crypto market. This development serves as a warning to investors that political factors can significantly influence digital asset prices, increasing market uncertainty.
Source: decrypt
