Trump’s Approval Rating Plummets, Sending Crypto Tumbling... The Linked Reasons [Sisa Show]

Approval Among Conservatives Also Declines... Weakened Standing
Concerns Grow Over Weakening of Various Cryptocurrency Policy Pledges

■ Broadcast: The Asia Business Daily 'So Jongsup's Current Affairs Show'

■ Host: Political Specialist So Jongsup

■ Director: PD Ma Yena

■ Guest: Reporter Lee Hyunwoo

President Donald Trump's approval rating has dropped below the psychological threshold of 40%. Amid rapidly rising inflation in the United States and growing backlash against his foreign policy, his approval rating has plummeted, raising concerns that his standing within the Republican Party is weakening. As worries intensify that the various pro-cryptocurrency policies Trump pledged during his presidential campaign may be pushed aside, the cryptocurrency market is also showing sluggish performance.

MAGA Support Also Drops to 42%... Trump’s Approval Rating in Crisis

AP Yonhap News

According to various public opinion polls in the United States, President Trump's approval rating has fallen below 40% since the third week of last month. Even among his core supporters, the so-called 'MAGA' conservative base, which had previously shown a majority approval, his rating has dropped to 42%.

The main reasons for the decline are severe inflation resulting from the prolonged tariff war and rising unemployment due to shrinking trade. Since Trump took office, the prices of daily necessities in the United States have soared. Beef is up more than 13%, bread by 4%, and orange juice by a staggering 28%. The continued rise in prices of imported essentials has directly impacted ordinary households, fueling discontent with the Trump administration.

The drop in approval is not only due to economic issues. There is also significant disappointment among his core supporters regarding foreign policy. During the election, Trump strongly promised an 'America First' and 'isolationist' policy. The core of his pledge was to withdraw U.S. troops stationed around the world and focus resources on America. His declaration that the U.S. would "no longer act as the world's police" was met with enthusiastic support from conservatives.

However, criticism has arisen that, in reality, there is little difference from the foreign policy of former President Joe Biden's administration. In particular, the decision to maintain military aid to Ukraine has sparked backlash among his core supporters. The MAGA conservative base has strongly opposed military support for Ukraine and expected it to be completely halted if Trump regained power. Trump declared during his campaign, "If elected, I will end the war in Ukraine immediately," but in reality, he has been unable to stop military aid to Ukraine and Israel, as he is working on ceasefire proposals for the Middle East and Ukraine.

Cryptocurrency Market Declines Amid Trump’s Weakening Position... Policy Expectations Diminish

Reuters Yonhap News

The decline in President Trump's approval rating is also having a direct impact on the cryptocurrency market. The main drivers that lifted cryptocurrency prices from the beginning of this year through the first half were Trump's announced policy to treat Bitcoin as a reserve asset and various meme coins issued by the Trump family. As Trump's base weakens, this is now acting as a negative factor.

President Trump issued 'Trump Coin' and 'World Coin' bearing his own name, and even 'Melania Coin' named after First Lady Melania Trump, drawing much attention. These coins saw massive inflows driven by strong expectations for pro-cryptocurrency policies from Trump. However, these coins have now lost half their value compared to their peak.

Practical details regarding cryptocurrency policy are also being delayed. The market restructuring bill, which was supposed to grant the Commodity Futures Trading Commission (CFTC) oversight authority over the cryptocurrency market within this year, has not passed and has been postponed to next year. In this situation, if the Republican Party loses in the midterm elections in November next year, there are concerns that cryptocurrency policy itself will struggle to gain traction.

Trump’s Stronghold Miami Mayoral Election Ends in Defeat... Concerns Over Lame Duck Signs

On the 10th (local time), Democratic Party's Eileen Higgins, who was elected mayor of Miami, Florida, USA. Photo by AP Yonhap News

Expectations that the Republican Party will lose in next year’s November midterm elections are spreading throughout U.S. political circles. President Trump’s current average approval rating stands at 38-39%, and analysts warn that a further drop of just 3-4% would put him in a very dangerous situation. Considering that former President Joe Biden recorded a record low approval rating of 34% right before the presidential election and suffered a crushing defeat, the current situation is far from optimistic.

The Democratic candidate’s victory in the Miami mayoral election held on the 9th-the first in 28 years-was a major shock to the Republican Party. Miami is a key city in Florida, Trump’s stronghold, and is close to Trump’s Mar-a-Lago resort. In this election, the Democratic candidate defeated the Republican candidate by more than 19 percentage points, winning with 59% of the vote. This is a clear warning sign that even strongholds are at risk.

Previously, the Republican Party also lost the New York mayoral election, but since New York has traditionally leaned Democratic, there was room for excuses. However, the loss in Miami is being accepted as a complete defeat with no room for excuses, pushing the Republican Party further onto the defensive.

There are also clear signs of Trump’s weakening position within the Republican Party. In a recent vote on redistricting aimed at increasing Republican seats in Indiana, the proposal was rejected due to opposition from Republican lawmakers. Of the 40 Republican members of the Indiana House, 21 voted against it. With more than half opposing the party leader’s stance, this has dealt a critical blow to Trump’s leadership.

If the Republican Party suffers a crushing defeat in next year’s midterm elections and loses its majority in Congress, not only will pressure from the Democratic Party intensify, but Trump may also lose control over the Republican Party. As the party begins to distance itself from Trump, there are cautious concerns that he could fall into a serious lame duck situation.