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Bitcoin falls 2% before rebounding after Trump remarks
Bitcoin rebounded 1.8% after the president said he has become a major crypto supporter, following a more than 2% drop tied to Strategy selling about $216 million of its holdings.
Bitcoin briefly declined more than 2% before turning higher after remarks from President Donald Trump, according to Yahoo Finance. The article said Bitcoin rebounded 1.8% later in the day after Trump told a reporter he has become a “big crypto guy” in response to questions about whether Bitcoin could be included in Trump Accounts, a set of tax-advantaged 503A accounts launched over the July 4 weekend.
Yahoo Finance also tied the initial weakness to corporate selling. It noted that on July 6, Strategy, a corporate buyer of Bitcoin, disclosed in a regulatory filing that it had sold about $216 million worth of Bitcoin, marking the second sale of its reserves this year and a reversal from the company’s prior “never sell” stance.
The Yahoo Finance piece added that Strategy posted a $12.54 billion net loss in the first quarter of the year as the price of Bitcoin slumped. It also characterized Bitcoin as volatile and sensitive to news cycles, pointing to commentary from Fidelity Viewpoints that cryptocurrencies have no cash flow and cannot pay dividends.
Finally, the article cited Bitcoin’s performance over the past year, saying the price is down 45.3% over the trailing 12 months. It also explained that “buying the dip” refers to purchasing crypto after a temporary drop, while highlighting the risk that the decline could extend into a larger selloff.
Latest closeBitcoin $66,570.02 ▲2.0%