Bitcoin slumped briefly below $10,000 on Monday, following another weekend sell-off that saw some digital tokens plunge by more than 20%.
Bitcoin slumped briefly below $10,000 on Monday, following another weekend sell-off that saw some digital tokens plunge by more than 20%. The largest cryptocurrency fell as much as 17% from Friday before paring its drop to $10,360, down 13%, according to Bloomberg composite pricing as of 11:01 a.m. in London. Other highly traded coins also retreated: Ethereum dropped 18% and Litecoin fell 15%.
The tumble comes days after U.S. President Donald Trump criticized digital coins on the heels of this year’s stellar rally. 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 behavior, including drug trade and other illegal activity.”
Bitcoin “continues to trade lower as comments from President Trump put downward pressure on the cryptocurrency,” said Alfonso Esparza, senior market analyst at Oanda Corp. in Toronto. Drawing Trump’s ire means “it could fall further to $8,000, giving back all the gains made in June.”
Bitcoin initially climbed after Trump’s comments, but has since more than erased the gains.
Trump also criticized Facebook’s plan to launch its Libra coin on Thursday, saying that if the social media giant really wanted to get into finance it should become a bank — and be regulated like one. Facebook officials are set to defend their digital-money proposal in two U.S. congressional hearings this week