The “Trump trade” that electrified crypto markets after the election is losing steam — and investors are feeling it. A new Morning Consult poll underscores fading political momentum for President Donald Trump: his approval rating has slipped to 45% while disapproval sits at 52%, down slightly from two weeks ago and well below the 52% approval he held at the start of his second term. Support remains concentrated with Republicans (86%), while Democrats (11%) and Independents (33%) are largely unconvinced. Even a headline-grabbing stock market — the Dow briefly topped 50,000 earlier this month — hasn’t translated into broader voter relief. Just 42% approve of his handling of health care costs and 44% approve of his economic stewardship; dissatisfaction is highest on those fronts. That political cool-off has spilled into crypto. The post-election rally that pushed Bitcoin above $125,000 in October 2025 has reversed: Bitcoin is now down more than 28% year-to-date. Speculative bets on projects directly tied to the administration have cratered as well — memecoin $TRUMP, once a poster child of the rally, has plunged as much as 95%. Industry voices point to several causes. Policy outcomes so far have failed to meet many expectations. Proposed legislation such as the CLARITY Act has drawn criticism from decentralization advocates who worry it could consolidate regulatory control rather than protect crypto’s permissionless model. Market psychology has shifted too: a once feverish risk-on environment is giving way to cautious, risk-off trading. High-profile figures have expressed disappointment. Cardano founder Charles Hoskinson called the administration’s impact on crypto “somewhat useless,” while Nobel laureate Paul Krugman described the Bitcoin decline as “the unraveling of the Trump trade.” Public sentiment reflects that frustration. A survey by The Information found about 71% of respondents oppose the administration’s cryptocurrency policies, with 59% strongly opposed and only roughly 20% in support. Even among crypto owners — who made up about 40% of survey respondents — opposition outpaced support, bucking earlier trends that showed crypto holders more favorably disposed toward Trump. Critics cite potential conflicts of interest tied to Trump and family crypto ventures, concerns that a strategic Bitcoin reserve could weaken the U.S. dollar, and broader worries about fraud, crime, and market volatility. Bottom line: the combination of tepid policy wins, contentious legislation, shifting investor sentiment, and growing public skepticism has turned what was a bullish political narrative for crypto into a cautionary market moment — and for many investors, the honeymoon is over. Read more AI-generated news on: undefined/news

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