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Bitcoin prices plunge by 26.6% in the last 7 days, is it Trump’s tweet or Congressional hearing on Facebook’s Libra?

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Bitcoin prices plunge by 26.6% in the last 7 days, is it Trump’s tweet or Congressional hearing on Facebook’s Libra?

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Bitcoin after having a phenomenal run throughout 2019 where it broke key resistance levels one after the another and peaking yearly highs finally saw the pullback everyone one was afraid of. The prices fell from 13,200 on July 10 to $9,587.52 on July 17th. Some of the major exchanges around the globe registered a dip of 26.6% on the weekly charts.

A few speculations suggest that the recent pullback was triggered by the sellers and whales who took control of the market once Bitcoin dipped below the key support levels of $11,000 and $10,700. Alex Krüger one of the global market analysts hinted that Trump’s recent tweet bashing Bitcoin could have been one of the factors that led up to the recent price pullback.

While the market was struggling a bit after peaking the yearly high of over $13k, but the analyst believes the recent bashing from the US President along with Secretary Mnuchin added to the falling prices. 

Trump’s tweet about Bitcoin bullish sign or bearish?

While many Bitcoin proponents called the US President’s tweet a bullish sign, the market is behaving otherwise. Their analogy was that Bitcoin’s popularity has expanded beyond the crypto realm of few millions and expanded to a point where even the President of the United States felt the need to talk about it. Some of the biggest crypto proponents who believed that the tweet from Trump was a definite bullish sign includes the likes of Digital Currency Group CEO Barry Silbert and Ikigai Fund founder Travis Kling. King said,

“The Chairman of the Fed and the Treasury Security both agree that Bitcoin is a speculative store of value. Both of them, along with the President, agree that Libra and Bitcoin are two very different things. Wildly no bullish,”

While Silbert tweeted that he never imagined the Treasury Secretary of the United States holding a press conference about Bitcoin and cryptocurrency. In Silbert’s eyes, this is a clear case of highly bullish sentiments.

However, critics do not necessarily agree with the analogy stating that even though President Trump acknowledged Bitcoin through his tweet, he did not say anything positive about it. And, in fact, him bashing Bitcoin led to the current trend of falling prices.

Is Libra a catalyst in the current market meltdown?

Facebook’s nascent crypto project named Libra has created a storm with its official announcement in June. Regulators have expressed their grave concerns over the working model of the social media giants digital currency. Amid going concerns the senators have summoned Facebook to address and clear some of the issues raised by the policymakers in the United States and around the globe.

Many believe that the concerns surrounding Libra could be one of the major factors for the depleting Bitcoin prices. The scrutiny of regulators towards Libra might have led the investors to doubt the short term performance of the crypto market.

Conclusion

The current bearish behavior in the crypto market could have been triggered by any of the above-mentioned factors, but the market correction of this magnitude was always on the cards, given how effortlessly Bitcoin has risen throughout the year. However, this should not be a concerning factor since the market has seen a 30% dip only last month after peaking the yearly high of near $13,700. Even then the market fought back and gained the lost ground in a matter of a couple of days.

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Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.
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