Bitcoin: Price, News, and the Same Old Games
Alright, let's get one thing straight: Paul Krugman has always hated Bitcoin. And Trump. So, color me shocked that he's now saying the recent Bitcoin price dip – it’s hovering around $90k after hitting a high of $126k, according to some reports – is because Trump's losing his grip. Please.
The "Trump Trade" – Give Me a Break
Krugman's theory, laid out in a Substack post, is that Bitcoin's rise was fueled by Trump-era policies and general crypto-friendliness. Now that Trump's "power is visibly diminishing," Bitcoin is supposedly tanking because it was all just one big "Trump trade."
He points to Trump's past actions, like pushing for a government Bitcoin reserve and letting people invest retirement savings in crypto. And let's not forget the pardon of Binance founder Changpeng Zhao, a real upstanding guy. But is that really why Bitcoin went up? Or down? Come on.
Look, I get it. Trump loves the crypto bros, and they probably love him back. He even holds a ton of Bitcoin himself – some estimate around $870 million. His family's even got their own mining company, American Bitcoin, which went public and hit a $5 billion valuation. Good for them.
But to say that Bitcoin's entire existence hinges on Trump is just… lazy.
Correlation or Causation? The Million-Dollar Question
Krugman points out that past crypto selloffs have coincided with Trump's policy moves, like that time he threatened a 100% tariff on China. Okay, fine. But correlation ain't causation, people. Bitcoin's volatile as hell. It goes up, it goes down. Sometimes there's a reason, sometimes there isn't.
And what about SpaceX suddenly transferring $105 million in Bitcoin to unmarked wallets? What's that about? Trying to consolidate their holdings, maybe? Or something else entirely? It's anyone's guess, offcourse. SpaceX transfers $105 million in bitcoin to unmarked wallets: Arkham
White House spokesperson Kush Desai called Krugman a "moron" for linking Bitcoin's price to "noneconomic matters concerning the president." Harsh, but maybe not entirely wrong.
Krugman also claims Trump's "partisan influence has wavered," citing the Epstein files release and "blowout Democratic victories" in New York and Seattle. As if those things directly affect Bitcoin trading.
He even quotes some blogger who says "power is unitary," meaning weakness in one area translates to weakness everywhere. Seriously? We're basing economic analysis on Twitter now?
Then again, maybe I'm being too harsh. It's easy to sit here and pick apart Krugman's argument. But what if he's partially right? What if Trump's crypto cheerleading did inflate the bubble, and now it's slowly deflating?
What's Actually Moving the Market?
Here's the thing: Bitcoin's bouncing back a bit, climbing above $90,000. Some analysts are saying it's due to a broader rally in "risk assets" and the possibility of the Federal Reserve cutting interest rates. BlackRock's Bitcoin ETF is seeing inflows again. Maybe it's just a temporary blip, but still. Bitcoin (BTC) Jumps Back Above $89,000 to Recoup Some Recent Losses
Plus, let's be real, the cookie notice on that other article is longer than the actual article. Who even reads that stuff?
Bitcoin is complicated. It's influenced by a million different factors, from global economics to Elon Musk's tweets. To pin it all on one guy – even a guy as influential as Trump – is just… simplistic.