Donald Trump's relationship with cryptocurrency advocates has deteriorated as digital currency values decline and his administration falters on crypto legislation.
According to Axios reporter Zachary Basu, members of the "hyper-online, male-dominated crypto space" who supported Trump's 2024 campaign are experiencing buyer's remorse. Initial enthusiasm has soured following Trump-branded meme coins that generated massive profits for insiders while leaving retail traders with worthless tokens.
Complications intensified after revelations that the Trump family's crypto venture generated hundreds of millions in revenue, including through a secret investment by an Emirati royal. The subsequent cryptocurrency market decline, combined with stalled crypto legislation due to Trump's conflicts with Democrats over his personal dealings, has frustrated investors.
Axios reported, "Despite multiple factors driving bitcoin's downturn, the president once hailed as crypto's greatest ally has now become one of its most visible scapegoats."
Crypto evangelist Carl Runefelt expressed regret on social media: "For everyone who listened to me when I said we go to $300,000 this cycle: I'm terribly sorry… I was wrong. At least I lost more than you… I'm shocked actually about this cycle. WHAT WENT WRONG??? It all seemed so perfect one year ago."
Runefelt subsequently added, "Yeah, trump was a reason for me to believe in $300k. At the end he was bad for crypto… Big mistake to have him as president."
Another crypto investor, Bitcoin Teddy, sarcastically observed, "When Trump said we wouldn't have to pay taxes on crypto gains, I didn't realize he was removing the gains."
While evidence remains unclear regarding whether crypto backlash will influence upcoming midterm elections, Axios notes a broader pattern: "The backlash captures a deeper problem for Trump: Niche and newly mobilized constituencies he courted in 2024 are growing disillusioned with his presidency."
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