When Donald Trump unleashed a savage bitcoin takedown on Twitter last week, a weird thing happened. Traders shrugged. If anything, the bitcoin price went up a little.
This was a significant moment.
With that one tweet, bitcoin proved that it works as designed; a currency that exists outside of government influence.
It’s the only market Donald Trump can’t crash with a tweet.
Trump moves markets, but not bitcoin
To understand why this is so important, let’s take a look at what usually happens when Trump attacks a company, asset, or currency on Twitter.
When Trump went after Amazon in March last year, the stock fell 5 percent within minutes of his threatening tweet.
In early May this year, Trump sent a tweet threatening fresh tariffs on China. The S&P 500 sank 1.5 percent in a day and spent the rest of May in free-fall.
Trump’s power to move markets is astonishing. He wiped $1.2 million off Toyota’s stock in five minutes and he crushed the peso with a simple threat.
The mainstream media got it wrong
Bitcoin did suffer a price fall on Sunday night and the mainstream press was quick to rush in and pin it to Trump’s tweets.
But just think about it for a minute. Trump’s tweet was arguably the most significant government intervention in the history of bitcoin. Do we really think traders waited three days to sell the news? No way.
Like any other market, bitcoin reacts immediately. Senior analyst at eToro, Mati Greenspan explained further in a recent interview with BloxliveTV. Asked whether Trump’s comments caused a price slump, he said:
Article published at SNN.BZ with permission from CCN.COM