Axios reported that trillions had evaporated from the cryptocurrency market since October, creating headwinds for President Donald Trump ahead of the midterm elections. Trump has marketed himself as the “Crypto President” and pursued pro-crypto policies, with his family’s business active in the space; however, a Bitcoin sell-off has cracked the support among followers who trusted his crypto bets. The report notes that the alliance forged with Trump early in the last election is waning as backers grow disillusioned.
Bitcoin rose from about $70,000 after his election to above $125,000, but recently dipped into the low $60,000s. Crypto influencer Carl Runefelt contends that Trump’s fixation with Bitcoin’s ceiling helped win votes, yet his presidency may have become detrimental to the asset class and its advocates. Reports also indicate that the World Liberty Financial (WLFI) project backed by Trump’s family played a role in large Bitcoin disposals, fueling anger among supporters and casting a spotlight on crypto volatility.
Axios observes that the ongoing situation has led crypto investors to question whether a Trump re-election would benefit them. Crypto industry political action committees are preparing to pour substantial sums into supporting the Republican side.
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