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% since Friday to trade at US$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% and litecoin fell 17%.
Bitcoin initially climbed 6.8% on Friday after Trump’s comments, but has since more than erased the gains. Trump wrote on Twitter on 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 behavior, 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 President Trump put downward pressure on the cryptocurrency”, said Alfonso Esparza, senior market analyst at Oanda in Toronto. Drawing Trump’s ire does mean “it could fall further to $8 000, giving back all the gains made in June”.