Was the latest BTC price action linked to Mnuchin press conference?

15 Jul, 2019 | Updated: 15 Jul, 2019
by David Robb
Was the latest BTC price action linked to Mnuchin press conference?

Just over an hour ago, the U.S. Treasury Secretary gave a press conference where he discussed crypto, particularly Facebook's new Libra project. Some traders are suggesting that the BTC price action of the last few days may be linked to this event.

Stephen Mnuchin's comments to the press were primarily aimed at pointing out the risks of terrorism and other illicit activities related to the crypto space, and insisting that Facebook's Calibra subsidiary must play by the rules with its new stablecoin venture. He did, however, point out that there was a difference between Libra and decentralized projects like Bitcoin, and praised the "responsible innovation" of crypto projects that were compliant.

The press conference was followed by a notable spike in the Bitcoin price, up as high as $10,950. Although BTC has been incredibly volatile over the past few months, this leap of almost $400 in just half an hour could plausibly be linked to the increased attention paid to BTC in the wake of Mnuchin's comments, as well as their not entirely negative sentiment.

BTCUSD chart by TradingView

One popular trader, Alex Kruger, had claimed on Twitter an hour before the press conference that it was likely to be "extremely bearish", as he was presumably expecting some harsh words on crypto regulations.

As the price increased afterwards, he updated his analysis to suggest that some traders with larger BTC bags may have known about the conference ahead of time. They would have then sold or shorted in anticipation of some anti-crypto sentiment, which could explain the weekend's major price crash.

The subsequent BTC pump could then be explained partially by these short positions being rapidly covered. As interesting as this theory is, some observers on Twitter pointed out that anyone who knew about the press conference would also be likely to know what would be said in it. 

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Bitcoin to hit $30K before next correction; TRON = ponzi scheme?!Subscribe to the Chepicap YouTube Channel for more videos!


Will Bitcoin be debated upon in the 2020 election?

(48 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage