President Donald Trump’s tweets targeting Bitcoin and other cryptocurrencies have finally started to create a negative impact on the digital currency markets. On Friday, Bitcoin briefly fell below the $10,000 mark, and other digital currencies followed suit. Ethereum experienced a 17% fall in prices to $221 while XRP fell by 5%.
A Brief Dip in Bitcoin
Bitcoin experienced a 10% drop in prices, falling to $10,175, per CoinDesk data. The currency also went down to $9,872 briefly but quickly recovered. The coin is still 2x its value since the beginning of the year, but if the downward pressure continues, it could shave off all its gains from June 2019.
The reason behind the sudden downturn isn’t clear, but the impact of Trump’s tweets cannot be ruled out. The President carefully laid out all criticisms against Bitcoin- from it not being legal tender to its value-based “on thin air” in his tweets. He also said that the US dollar is the only currency in the country and it’s a reliable currency, unlike Bitcoin, which has high volatility. Trump also said, “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”
Facebook Will Hurt Bitcoin Too
In his tweets, Trump mentioned Facebook and asked the company to get a banking charter if it wanted to work like a bank. Democratic lawmakers in the US are already gearing up for two back-to-back hearings for Facebook this week. Reuters also reported that the lawmakers are considering a law that will ban tech giants from entering the financial services business.
Facebook and Trump have brought global attention to Bitcoin, and Coinbase CEO Brian Armstrong considers it an “achievement.” His views were backed by Fundstrat Global Advisors’ Tom Lee, who said that Bitcoin and cryptocurrencies are “in the main stage now.”