Bitcoin, the world's leading cryptocurrency, fell by 2.68% on Friday following remarks made by former U.S. President Donald Trump. The digital asset market, which is highly sensitive to political commentary and macroeconomic indicators, reacted quickly to Trump’s unexpected comments, which cast doubt on the stability and long-term prospects of cryptocurrencies.
During a campaign event, Trump criticized digital currencies, reiterating his stance that Bitcoin and other cryptocurrencies could be used for illicit purposes and pose a threat to the U.S. dollar. He emphasized that the government should take stronger action to regulate the digital asset market. His comments created uncertainty among investors, leading to a swift selloff that brought Bitcoin below the $67,000 mark.
Trump’s remarks come at a time when financial markets are already on edge due to disappointing economic data. On the same day, the National Association of Realtors (NAR) reported that existing home sales in the United States had plummeted to their lowest level since 2009. April’s sales dropped more than expected, falling by 3.4% month-over-month and more than 20% year-over-year.
Analysts attribute the decline to persistently high mortgage rates and limited inventory, which have made homeownership increasingly unaffordable for many Americans. With interest rates hovering near multi-decade highs, potential buyers are sidelined, awaiting more favorable conditions. The housing slump reflects broader economic anxieties, including concerns about inflation, employment, and the Federal Reserve's monetary policy outlook.
The dual impact of Trump’s statements and the troubling housing data has added pressure to an already fragile market sentiment. While Bitcoin’s drop may recover in the coming days, the housing market’s weakness suggests deeper structural issues that could weigh on economic growth in the months ahead.
Investors will closely watch upcoming economic reports and political developments, particularly with the 2024 presidential election campaign gaining momentum. Market volatility is expected to remain high as geopolitical risks and domestic policy uncertainty continue to influence investor behavior.