Democrats mock "cryptocurrency collapse," sparking controversy; Bitcoin plummets, intensifying political polarization

On February 6th, as the cryptocurrency market experienced a significant plunge, the official U.S. Democratic Party account posted a mocking image of Bitcoin’s decline on social media, accompanied by the caption “Oops,” which quickly sparked strong dissatisfaction within the crypto industry. The image juxtaposed Bitcoin’s price chart with an image of Trump wearing a “MAGA” hat, and was criticized by multiple industry insiders for lacking basic respect for investors’ losses.

Market data shows that Bitcoin dropped 8.1% in 24 hours, trading at approximately $65,729, down more than 30% compared to a year ago. During the same period, the crypto market saw a large-scale liquidation, with about $2.6 billion in positions forcibly closed within 24 hours, with longs accounting for over 80%.

Caitlin Long, CEO of Custodia Bank, responded by saying that such gloating comments ignore the reality that many Democratic supporters also hold digital assets. Patrick Witt, Executive Director of the President’s Digital Asset Advisory Committee, also pointed out that in the context of an upcoming election cycle, such remarks could alienate voters who are paying attention to crypto policy developments.

Tyler Winklevoss, co-founder of CEX, believes this reflects long-standing political suppression. John Deaton, a lawyer supporting XRP, attributed the market turbulence to long-term fiscal deficits and excessive money issuance, arguing that ordinary people turning to crypto is a result of declining trust in traditional financial systems. Former White House Communications Director Anthony Scaramucci called the tweet “stupid” and said such actions are amplifying Trump’s political advantage.

Meanwhile, similar comments from the office of California Governor Gavin Newsom and ongoing investigations into Trump family crypto projects within the Democratic Party are further escalating partisan tensions surrounding cryptocurrencies. Analysts believe that amid the sharp fluctuations in Bitcoin and rising regulatory concerns, cryptocurrencies are no longer just a financial topic but are gradually evolving into a key issue in U.S. political battles.