By Trendsetter Tribune 
The once-rapturous relationship between President Donald Trump and the cryptocurrency community has hit a significant “crypto winter,” as market losses and legislative gridlock turn former evangelists into vocal critics. As of February 9, 2026, Bitcoin is trading below $67,000—a nearly 50% drop from its October peak of $126,210—effectively erasing the “Trump Bump” seen after the 2024 election.
The “Hyper-Online” Revolt
According to Axios reporter Zachary Basu, the very constituency that helped mobilize Trump’s 2024 digital campaign is now experiencing acute “buyer’s remorse.” The frustration is centered on three main pillars:
- Market Collapse: High-profile influencers like Carl Runefelt have publicly apologized for predicting a $300,000 cycle, with Runefelt stating, “At the end [Trump] was bad for crypto… Big mistake to have him as president.”
- Failed Meme Coins: Retail traders have been hit hard by the collapse of Trump-branded tokens. The $TRUMP meme coin has plunged to roughly $3.93, down from a pre-inauguration high of $45.
- The UAE Scandal: Revelations from the Wall Street Journal that an Emirati royal secretly invested $500 million in the Trump family’s crypto venture, World Liberty Financial (WLF), have fueled allegations of “brazen corruption.” While the Trump family reportedly netted $1.4 billion from crypto projects this year, the $WLFI token itself has lost half its value since September.
Legislative Gridlock & Conflict of Interest
Despite early wins—including the signing of the GENIUS Act and a stablecoin regulation law—major “market structure” legislation has stalled in the Senate.
| Legislative Goal | Status (as of Feb 2026) | Primary Obstacle |
| Market Structure Bill | Stalled | Dispute over provisions; Coinbase CEO Brian Armstrong withdrew support, calling the draft “worse than no bill.” |
| Strategic Bitcoin Reserve | In Limbo | Blocked by Senate Democrats; administration citing “obscure legal provisions” preventing the purchase of 1 million BTC. |
| CLARITY Act | Delayed | Markup postponed indefinitely by the Senate Banking Committee. |
TD Cowen analysts suggest that only Trump’s personal intervention can break the deadlock, but his personal financial stakes in the industry have made bipartisan cooperation nearly impossible.
A Policy Shift Toward Risk
Facing a stagnant market, the administration has pivoted toward more controversial executive actions:
- 401(k) Integration: A new executive order encourages the inclusion of “alternative assets,” including crypto and private equity, in retirement plans.
- Tariff Impact: Trump’s 25% tariff on advanced computing chips has inadvertently crippled domestic Bitcoin miners, further contributing to the industry’s downturn.
As the 2026 midterms approach, the “crypto revolt” represents a growing fracture in the MAGA coalition. Disillusioned investors, once promised a “Crypto Capital of the World,” are now questioning if they were merely the “exit liquidity” for a family-run enterprise.