President Donald Trump does not care about crypto until he suddenly, cares about crypto. He recently said he was “not a fan” of digital currencies and this of course triggered a sell-off in Bitcoin, Ripple and other major names in the crypto-world. But note his timing, as he said this while hosting a group of content providers at the White House, and several days after with what seems to be one eye on Facebook and the new “coin” called Libra. Trump even said that Facebook would need a bank charter for this “currency” if it were to move forward in the future. Think about the chorus of people including Central Banks in Europe as well as global regulators, all saying they are doubtful about the validity of cryptocurrencies. Trump went on, “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”
Our view is as follows: Trump very likely does not care about the highly volatile assets but he does care about social media firms and their inability to understand free speech and US values, according to those in Trump-world. Think about the timing of his comments. Trump has been making comments recently about social media companies and their behavior and it was only when Facebook announced the Libra project that Trump became vocal about the ills of crypto. Bitcoin is up 160% since the start of the year and with the recent comments from Trump, it fell below $10,000. Ether slipped 17% and XRP fell 5% in this most recent sell-off. Trump, in our view, is making Libra a target.