Abu Dhabi, UAEFriday 7 August 2020

Bitcoin tumbles on Trump criticism of cryptocurrencies

Largest digital currency declines 15 per cent since Friday, while Ethereum drops 23 per cent and Litecoin falls 17 per cent

A Bitcoin logo on a cryptocurrency ATM in Santa Monica, California. Digital currency has fallen 15 per cent since Friday. Reuters
A Bitcoin logo on a cryptocurrency ATM in Santa Monica, California. Digital currency has fallen 15 per cent since Friday. Reuters

Bitcoin slumped in another large weekend move after US President Donald Trump’s criticism of cryptocurrencies late last week put the focus back on this year’s jump in prices.

The largest cryptocurrency tumbled 15 per cent since Friday to trade at $10,028.55 as of 8:54am in Hong Kong, after briefly falling as low as $9,980. Other coins also retreated: Ethereum dropped 23 per cent and Litecoin fell 17 per cent.

Bitcoin initially climbed 6.8 per cent on Friday after Mr Trump’s comments, but has since more than erased the gains. Mr Trump wrote on Twitter Thursday that he is “not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,” adding that “Unregulated Crypto Assets can facilitate unlawful behaviour, including drug trade and other illegal activity.” He also criticised Facebook’s plans for the Libra digital currency.

Bitcoin “continues to trade lower as comments from Mr Trump put downward pressure on the cryptocurrency”, said Alfonso Esparza, senior market analyst at Oanda in Toronto. Drawing Mr Trump’s ire does mean “it could fall further to $8,000, giving back all the gains made in June”.

Updated: July 15, 2019 08:36 AM

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