Bitcoin price was just rebounding when US President Donald Trump shattered hopes for stimulus round two. In just 20 minutes after the president’s tweet, the price of the leading cryptocurrency fell $ 200.
The following is at risk if Bitcoin falls lower.
BTCUSD $200 Drop in 20 Minutes | Source: TradingView
Trump Tweet Tanks Bitcoin Price, Tanks With More Stimulus Checks
Bitcoin price has been well over $ 10,000 and more recently over $ 10,500. It even showed strong resilience to the recent BitMEX fiasco, the KuCoin hack, and even President Donald Trump who signed COVID.
But the US president, who has no chance of a stimulus package recently proposed by Nancy Pelosi and the House Democrats, has crashed markets.
Nancy Pelosi is asking for $ 2.4 trillion to save poorly run, criminal, democratic states and money that is in no way related to COVID-19. We made a very generous $ 1.6 trillion offer and, as usual, they are not negotiating in good faith. I reject their …
– Donald J. Trump (@realDonaldTrump) October 6, 2020
The Dow Jones fell 300 points almost instantly on the news, and Bitcoin price fell $ 200 in less than 20 minutes.
So far, support at $ 10,500 has persisted, but a loss of the level could cause past lows to repeat.
In the short term, Bitcoin could send cryptocurrency back into the $ 9,000 area if the previous $ 10,000 support collapses. A gap in the CME futures chart near $ 9,200 could serve as the most logical target.
Related reading | Bitcoin’s dwindling volatility could lead to a crucial step
Election risk and a second wave of the pandemic have torn the markets, and Bitcoin price may have fallen for good thanks to Trump’s tweet.
The president effectively killed two birds with one stone over his tweet, undoing the recent upward momentum in the crypto asset and ongoing talks about the second round of stimulus checks.
Trump only recently returned to office after a stint at a medical facility treating him for COVID. Trump will face Biden in November, but may have just sealed the victory for his opponent with the controversial move. In addition, Bitcoin has been put on the ropes and there is a risk of other disadvantages.