Crypto Market Crash Sparks Reckoning Across Markets and Trump Narrative

As crypto and stock markets falter, experts warn of a broader reckoning that could reshape portfolios, valuations, and political fortunes tied to crypto.

Rich by Coin

2026-02-07

Trump promised that crypto and markets would make his supporters rich. If those bubbles burst, the political consequences could be just as severe as the financial ones. Third, as the crypto market crashes and as the stock markets look as though they’re heading the same way, it would be great if Trump’s fortunes went the same way. That is where the Americans put their money, as a consequence, and if both crash, we just have to hope his bubble bursts as well.

The evidence from markets tells us that the crypto bubble is deflating, still has a long way to fall, and that this matters for markets because many people have their fortunes tied to the well-being of those valuations, including many of the world’s banks, and politically and financially, they could be in trouble as well. The time has come to face the reckoning. We’re going to have a crash. Now, we need a government and a set of ideas that is capable of dealing with it.

That’s the issue of our moment. This is a crisis coming our way. I know I’ve said it before, but the evidence that the crisis is emerging is now very real. In fact, everything I’ve said has been justified by current events, and I cannot see at this moment Bitcoin changing direction for a long time to come, if ever.

And I’m not alone because people have seen through the mythology, just as they’re seeing through Trump. A sharp downturn in crypto valuations coincides with sliding stock indices, reinforcing concerns that the crypto bubble is deflating. The trend matters because many investors’ fortunes are tied to crypto and broader market valuations, including exposures within major banks. As signs of a crash accumulate, policymakers will face pressure to address the fallout.

The latest data points to a clear deflation of the crypto bubble, with potential spillovers for markets and politics, and Bitcoin showing limited signs of reversal in the near term. Investors should monitor developments and consider risk adjustments, while governments prepare credible policy responses to weather the coming reckoning.