Opinion: Donald Trump and the Crypto Boom — Why Is It Struggling?
By Ryan Cummings and Jared Bernstein
Published February 26, 2026 | The New York Times
Since its peak in late 2025, Bitcoin—the world’s largest and most famous cryptocurrency—has experienced a steep decline, losing nearly half its value. This downturn has wiped out close to $2 trillion in wealth from the global crypto market. The striking collapse raises a question: Why did it take so long for the bubble to burst?
According to economists Ryan Cummings and Jared Bernstein, the fundamental issue is that outside of its use in crimes and scams, cryptocurrency technology remains largely useless, and crypto’s underlying economic model is flawed. The industry’s remarkable resilience up to this point, they argue, was largely due to the extraordinary support it received during the Trump administration.
During Donald Trump’s presidency, the crypto industry enjoyed unprecedented favor and opportunity. The sector’s most ardent supporters—often called “crypto bros”—invested millions into Trump’s election campaign and appeared to be rewarded handsomely. A longtime crypto investor was placed as a White House adviser, certain cryptocurrencies gained official federal recognition, regulatory scrutiny was all but dismantled, and industry leaders were invited to exclusive White House dinners hosted by Trump himself.
Rather than securing crypto’s legitimacy, however, this preferential treatment simply exposed how fundamentally worthless many of the assets were. As investors began to shy away from riskier investments, Bitcoin’s price plummeted below $70,000—a nearly 50 percent fall from its peak last October—demonstrating that the critical scrutiny crypto always needed was finally arriving.
When the current administration took office in 2021, the crypto industry’s lobbying efforts were more intense than anything government economists had ever seen. Crypto companies and investors employed a legion of lobbyists aiming to shape regulation and embed their volatile currencies into mainstream finance. Their ultimate goal was to elevate crypto to a systemically important status, which could potentially guarantee taxpayer-funded bailouts in the event of another crash.
One prominent advocate was Senator Cynthia Lummis, a Wyoming Republican who earned the moniker “Crypto Queen.” Lummis received over $50,000 in campaign contributions from crypto industry players just weeks before sponsoring legislation favorable to the sector.
As government economists involved in policy advisory roles, Cummings and Bernstein initially approached crypto with an open mind. From 2021 to 2022, they attended numerous meetings where crypto firms claimed that blockchain technology—the backbone of cryptocurrencies—would revolutionize everything from financial access to the internet itself.
Ultimately, however, the reality has been starkly different. The speculative nature of cryptocurrencies and the industry’s drive to win political favor have not translated into meaningful value or improved financial systems. The recent crash underscores that even high-level political support cannot fix crypto’s inherent weaknesses.
In summary, while the Trump administration’s backing may have delayed crypto’s decline, it has done little to address the fragility of the sector. As investors and regulators continue to scrutinize cryptocurrency, the question now is whether the industry can ever live up to its promises, or if its struggles signify a fundamental reckoning.
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