The post-election rally in cryptocurrency markets tied to former President Donald Trump, often dubbed the "Trump trade," has rapidly dissipated, leading to significant losses for associated assets and a shift in sentiment among crypto holders. A new Morning Consult poll shows Trump's approval rating slipping to 45%, with disapproval climbing to 52%, down from the 52% approval he enjoyed at the start of his second term. This political cooling is mirrored in crypto markets.
Bitcoin, which soared above $125,000 in October 2025 on election euphoria, is down over 28% year-to-date. Enthusiasm for projects tied to the Trump administration has evaporated, with memecoins like $TRUMP on Solana losing as much as 95% of their value. Industry insiders cite a mix of factors: policy outcomes have underwhelmed, proposed legislation like the CLARITY Act is viewed as potentially centralizing, and a broader market risk-off sentiment has replaced speculative fervor.
Sentiment among crypto owners has turned notably more critical. A survey from The Information shows that roughly 71% of respondents oppose the Trump administration’s cryptocurrency policies, with 59% strongly against them. Only about 20% expressed support. Even among crypto owners—around 40% of respondents—opposition outweighed support, bucking earlier trends where crypto holders leaned pro-Trump. Critics cite concerns over potential conflicts of interest from Trump family crypto ventures, the risk a strategic Bitcoin reserve could weaken the U.S. dollar, and broader worries over fraud and volatility.
High-profile figures have echoed the disappointment. Cardano founder Charles Hoskinson labeled the administration’s crypto impact "somewhat useless," while Nobel laureate Paul Krugman called the Bitcoin crash "the unraveling of the Trump trade."
Concurrently, analysts are scrutinizing the long-term trajectory of the TRUMP memecoin itself. Price predictions for 2026-2030 highlight its extreme dependence on volatile political narratives, regulatory developments from bodies like the SEC, and the health of the broader crypto market. Experts warn that assets like TRUMP, which lack inherent cash flows or staking yields, are exceptionally vulnerable in downturns and their long-term survival hinges on evolving beyond pure speculation.
