The president took to Twitter on Thursday to share the fact that he’s “not a fan of Bitcoin and other cryptocurrencies,” citing his concerns over their utility as a means of unlawful behavior, including the “drug trade and other illegal activity.”
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Following Trump’s undoubtedly well-informed tweets, Bitcoin has seen a heightened level of volatility within its current range of $10,000 and $12,000. Immediately following his comments, Bitcoin surged to around $11,800 over the course of Thursday night and Friday and has since dropped down below to again test the lower trend line found $9,800.
On Monday, further volatility struck the market after US Treasury Secretary and former investment banker Steven Mnuchin held a press conference to discuss the “national security issue” posed by cryptocurrency.
“This is indeed a national security issue,” Sec. Mnuchin said on the need for more regulation in the crypto space. “We will not allow digital asset service providers to operate in the shadows.” https://t.co/03CEzStDZE pic.twitter.com/zykiOLkm96
— Bloomberg Crypto (@crypto) July 15, 2019
Mnuchin’s primary concern appeared to be over Facebook’s (FB) Libra project, although he did mention he’s more worried about Bitcoin’s potential utility in illicit transactions than its status as a speculative investment.
“We’ll make sure the general public and investors understand what they’re investing in and whether it’s the SEC or other regulators there [will be] proper disclosures,” Mnuchin said.
Bitcoin’s price rose more than 4% in the hour after the conference began
Taking a look at the daily chart, it is clear that BTC’s parabolic rise from $3,000 is currently being tested and a confirmed break below the 25-day moving average could result in further consolidation.
Despite the relatively weak-looking charts, the fact that Trump and Mnuchin mentioned Bitcoin is a huge win for the industry that has been around for less than a decade. Add in Federal Reserve Chairman Jerome Powell calling Bitcoin a speculative store of value during his testimony to the Senate Banking Committee last week and it’s clear Washington has crypto on the brain.
No matter how you look at it, it seems that Bitcoin is here to stay and the moderate current adoption levels indicate that there are a lot of fresh investors yet to enter the market, for better or for worse.
More: Trump’s Bitcoin Tweet
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.