Former U.S. President Donald Trump claimed on Wednesday that he had “saved” the American crypto industry, alleging that former SEC Chair Gary Gensler and an “anti-crypto army” had nearly destroyed it by driving Bitcoin, crypto perpetuals, and innovation offshore. Trump made the statement on Truth Social.
“America is now the crypto capital of the world, and builders and entrepreneurs are coming back to the United States where they belong,” he added. “Under my leadership, we will codify a future-proof digital asset market structure that cannot be undone by the crypto haters. The new frontier of finance is being built in America, and Trump will never let crypto down!”
In a separate post, he stated, “where we are currently the crypto capital of the world, other countries are trying diligently to replace us in that capacity, but we won’t let that happen. It is a major industry, and we must protect it.”
Market Reaction
Despite such pronouncements from a world leader typically causing market gains, the crypto market experienced a sharp downturn. The market fell nearly 3%, wiping out over $80 billion.
Over the past 24 hours, approximately 165,000 traders were liquidated, with total liquidations reaching $928 million, 93% of which were long positions, according to Coinglass.
Bitcoin dropped 3.2%, falling to $72,800, its lowest level since mid-April. The asset has now lost 8% over the past two weeks and is approaching the $60,000 zone.
Bitcoin and Ethereum Performance
Bitcoin experienced a significant drop, falling below $73,000 in a 60-minute period. Over $480 million in long positions were liquidated.
Ethereum also fell below the $2,000 psychological level, declining more than 4.4% to $1,975, its lowest level since the end of March. Altcoins broadly declined as the bear market intensified.
“Retail has erupted with ‘buy the dip’ calls toward ETH as a result of this drop below a key psychological support level,” reported Santiment. “This typically means the price may have a bit further to fall, due to the crowd (which usually gets calls wrong) being too optimistic.”
Geopolitical Factors
Market pressures were further exacerbated by a new wave of U.S. military strikes on Iran late Wednesday.
The strikes targeted an Iranian military site, and the U.S. shot down four Iranian drones near the Strait of Hormuz, according to Reuters.
“These actions were measured, purely defensive, and intended to maintain the ceasefire,” an official told the outlet. Iran retaliated by attacking a U.S. base in Kuwait.
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