The impact of President Trump’s recent anti-Bitcoin tweets seems to be affecting cryptocurrency markets when BTC drops below $ 10,000. The metric dimension of market sentiment has shifted to “Extreme Fear” — is such a dramatic shift justified?
With a few tweets, US President Donald Trump catapulted his way to the center of the cryptocurrency universe last week. The annoying head of state said that he “is not a fan of bitcoins and other cryptocurrencies,” claiming that they are used for “illegal behavior” and “based on no place.” BTC Fear and Greed Since he did the tweets, not only has the Bitcoin price dropped quickly, but the market sentiment index, the Crypto Fear & Greed Index, is now read as “Extreme Fear”.
The Crypto Fear & Greed index is based on data from five sources: price volatility, volume, social media sentiment, polls, Google Trends, and the dominance of one coin relative to the rest of the cryptocurrency market. The index then gives the market a value between Extreme Fear and Extreme Greed.
The index watched a rather sudden change in market sentiment on July 12, when Trump did his tweets. He read Extreme Greed on the market last week.
It seems a fair assessment that this change in market sentiment is the result of Trump’s comments on Bitcoin. Given that he is the president of one of the most important cryptocurrency markets on the planet, some argue about the real damage it can cause to the entire industry. Can Trump ban bitcoins?
In the long branch of Twitter, trader and market analyst Alex Kruger reflected on the likelihood (and even the possibility) of Trump’s ban on Bitcoin.
In his reflections, Kruger reflects that, although a Bitcoin ban is possible in the United States, this is unlikely. Any actions are likely to be carried out in accordance with a presidential decree and will be aimed at fake ramps and merchants, since “the US government cannot ban the code.”
Kruger admits that the likelihood of a legislative action has increased since Trump’s tweets appeared, and the president has no shortage of reasons to dislike this technology. He cites three common criticisms of Bitcoin as a potential argument for an executive order: it can be used in illegal activities, can be used to evade economic sanctions and undermine the global hegemony of the United States.
Contrary to the opinion of some in the cryptocurrency community, Kruger believes that any type of ban in the United States will lead to a massive fall in prices. He claims that he himself will quickly sell to pick up BTC at a reduced price at a later date.
How do you think, how likely is it that Trump will go for bitcoins and other cryptocurrencies? We would love to hear your thoughts in the comments below.