Bitcoin price just tanked just as US President Donald Trump crushed hopes of the stimulus round two. In just 20 minutes from the time the President tweeted, the price of the leading cryptocurrency plunged $200.
Here’s what’s at risk if Bitcoin drops lower.
BTCUSD $200 Drop in 20 Minutes | Source: TradingView
Trump Tweet Tanks Bitcoin Price, Tanks Of More Stimulus Checks
Bitcoin price has been holding strong above $10,000, and more recently, $10,500. It even showed strong resiliency in the face of the recent BitMEX fiasco, the KuCoin hack, and even President Donald Trump contracting COVID.
But the US President canning any chance of a recent stimulus bill proposed by Nancy Pelosi and House democrats has sent markets crashing.
Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their…
— Donald J. Trump (@realDonaldTrump) October 6, 2020
The Dow Jones dropped 300 points almost instantly at the news, and Bitcoin price plunged by $200 in under 20 minutes.
Thus far, support at $10,500 continues to hold, but losing the level could result in a revisit to past lows.
Near-term, if Bitcoin breaks down though $10,000 support that’s held strong so far, it could send the cryptocurrency back to the $9,000 range. A gap left on CME Futures charts near $9,200 could act as the most logical target.
Related Reading | Dwindling Bitcoin Volatility Could Lead To Decisive Move
Risk of the election and a second wave of the pandemic have had markets on edge, and Bitcoin price may have just fallen off it finally thanks to Trump’s tweet,
The President effectively killed two birds with one stone via his tweet, crushing the crypto asset’s recent bullish momentum, and ongoing talks of the second round of stimulus checks.
Trump only recently returned to office following a stint at a medical facility where he was being treated for COVID. Trump squares off against Biden this November but may have just sealed the win for his opponent with the controversial move. And it also put Bitcoin on the ropes and at risk of more downside.