Bitcoin crash: Cryptocurrency prices tumble after Trump's scam warning - bear market panic

Cryptocurrency have fallen since the comments from former US President Donald Trump, as the markets continue their downward spiral. Bitcoin's price plunged by eight percent from $35,474 at 7.30pm on Monday to $32,585 at 5.30am this morning (Tuesday). Ethereum dropped by nine percent from $2,710 to $2,466, while Dogecoin fell by the same percentage margin from $0.355 to $0.322.

Mr Trump had told Fox Business he sees Bitcoin as a "scam" affecting the value of the US dollar.

He said: "Bitcoin, it just seems like a scam.

"I don't like it because it's another currency competing against the dollar."

The former US President added he wanted the dollar to be the "currency of the world".

Mr Trump has previously spoken out against Bitcoin, which has a tendency to fluctuate wildly when leading figures comment on it.

In 2019, the cryptocurrency plunged by around $20,000 after he said he was “not a fan” of it and rival digital currencies.

In a post on Twitter, from which he has now been banned, the former US President claimed crypto assets could “facilitate unlawful behavior, including drug trade and other illegal activity”.

Neil Wilson, chief market analyst for, has disagreed with Mr Trump's latest comments, and does not think Bitcoin is a currency.

"I call Bitcoin more of a security, like a stock or bond.

"Although it's appreciated massively, it's far too volatile to be a currency - it moves around more than most stocks do."

Commenting on the assertion from Mr Trump that Bitcoin is a threat to the US dollar, he added: "The means by which America exerts influence over the world is predominantly by the dollar, and it's not going to give that up, so I don't see Bitcoin as a threat whatsoever.

"Governments don't like other people creating money - they've seemed to tolerate cryptocurrencies for some time, but they will eventually get their own digital currencies established and will squeeze Bitcoin out into the margins."

Bitcoin's price has been falling sharply over the past two months after hitting a record high and is yet to show any signs of a sustained recovery.

Late last month, China said it was banning banks and payment firms from providing services related to crypto-currency transactions.

The week before, electric car maker Tesla had also announced it would no longer be accepting Bitcoin as a form of payment for its vehicles.

Bitcoin's price had plummeted by more than seven percent overnight on Friday after a bizarre tweet from Tesla boss Elon Musk, who appeared to mock the cryptocurrency's recent struggles.

The tech billionaire has been extremely vocal on social media about the use and future of cryptocurrencies.

But his tweets and comments regularly trigger significant upward or downward movements in the volatile market.

In February, the price of Bitcoin surged to an all-time high after he tweeted Tesla would begin accepting payments of the digital currency for sales of their electric cars.

But on May 17, Bitcoin's price plunged by almost 10 percent to its lowest since February after the Tesla boss hinted on Twitter the electric carmaker may sell its cryptocurrency holdings.


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