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Trump says Bitcoin is a ‘SCAM against the dollar’ that needs ‘very, very high regulation’
DONALD Trump said that Bitcoin is a "scam against the dollar" that needs "very, very high regulation."
The 45th president made the comments during an interview with Fox Business on Monday morning.
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"Bitcoin, it just seems like a scam," said. "I don’t like it because it’s another currency competing against the dollar … I want the dollar to be the currency of the world. That’s what I’ve always said."
He went on to insist that cryptocurrencies should be regulated "very, very high."
Since the former president made the comments, Bitcoin's value appeared to fall by over 1.3percent, from $36,472 to $35,973 in just one hour.
Trump has previously shared his distrust for digital currencies, notably in a July 2019 tweet on his now-deleted account.
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He dubbed Bitcoin and other cryptocurrencies as "highly volatile," adding that he was "not a fan" of them.
"Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity," he added.
Friday's US jobs data put pressure on the dollar as investors bet that jobs growth was not strong enough to raise expectations for the US Federal Reserve to tighten its monetary policy.
There was little movement in major currency pairs and the S&P 500 was modestly lower without US economic data to help give it direction on Monday.
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The dollar index was down 0.1 percent while the euro was up slightly against the dollar, at $1.2177.
"At this point it looks like the market really wants to be short dollars. To us it suggests there's a risk chasing this move. It's a crowded position," said Bipan Rai, North America head of FX strategy at CIBC Capital Markets.
"You've already got a sizeable chunk of the market that's net short U.S. dollars so if feels like we need a shakeout of those positions."
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While Rai said there was "some risk the dollar will rally" he noted that investors are waiting for Federal Reserve's meeting next week.
The foreign exchange market sees no reason for the Fed to change its monetary policy, "so we’ve still got accommodative monetary policy in the United States," said Kit Juckes, head of FX strategy at Societe Generale.
Market participants will also be looking at US inflation data and the European Central Bank meeting, both on Thursday.
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