Access Restricted for EU Residents
You are attempting to access a website operated by an entity not regulated in the EU. Products and services on this website do not comply with EU laws or ESMA investor-protection standards.
As an EU resident, you cannot proceed to the offshore website.
Please continue on the EU-regulated website to ensure full regulatory protection.
Thursday Nov 27 2025 03:10
1 min
Paul Krugman, Nobel laureate in economics, offers a sharp analysis of the intricate relationship between Bitcoin and politics, particularly the influence of former President Donald Trump. Krugman posits that Bitcoin has evolved beyond being a mere financial asset and is now deeply intertwined with Trump's political fortunes.
Krugman questions Bitcoin's true utility, noting that it doesn't function as a medium of exchange nor does it provide a hedge against inflation or financial risks. Instead, he argues it is primarily used to obscure the flow of funds, facilitating illicit activities and making users vulnerable to crimes like kidnapping.
Krugman asserts that Bitcoin has become a tool for financial predation, being marketed to naive investors who may not understand the risks. He strongly criticizes the Trump administration for undermining institutions established to protect investors after the 2008 financial crisis, creating a favorable environment for financial speculators.
Krugman links Bitcoin's recent price drop to Trump's declining political influence. He points out that Trump is striving to reciprocate the cryptocurrency industry, but his diminishing power affects his efforts. He also mentions Trump's electoral defeats in Virginia and New Jersey, as well as the ongoing scandal regarding his relationship with Jeffrey Epstein, all contributing to his declining popularity.
Krugman concludes that Bitcoin has become a 'Trump trade,' and its decline reflects Trump's waning control over the Republican Party. He promises further analysis of the relationship between politics and cryptocurrencies in the future, emphasizing the interconnectedness of political power and financial markets.
Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.
Latest
View all
Monday, 27 July 2026
6 min
Monday, 27 July 2026
6 min
Monday, 27 July 2026
7 min
Monday, 27 July 2026
Indices
Gold Price Today, July 28: Gold Falls Below $4,050 as Dollar Strengthens
Monday, 27 July 2026
Indices
Kioxia Stock Falls 18% Ahead of Earnings: Can Results Halt the Sell-Off?
Monday, 27 July 2026
Indices
Memory Chip Stocks Slide as CXMT’s 466% Debut Rattles SanDisk and Micron
Monday, 27 July 2026
Indices
Apple Earnings Date: Can iPhone Sales Deliver Another Strong Quarter Ahead of Apple's Q3 Results?
Monday, 27 July 2026
Indices
Gold Price Forecast: ETF Inflows and Central Bank Buying Support Gold Ahead of the July 29-30 Fed Meeting
EN
