BTC Price Drops After Initial Gains

President Trump sparked a major short squeeze on Sunday with his post about crypto reserves, but gains are now reversing in early U.S. trading on Monday.

Bitcoin (BTC) has dropped about 5% in the past hour, currently trading at $89,500. While it is still higher than around $85,000 before the president’s social media post on Sunday, it is down from a peak of $95,000.

The other cryptocurrencies mentioned by Trump – ether, solana, XRP, and cardano – are all still up from Sunday but have also given back a significant portion of their gains.

“Nothing new here,” noted Arthur Hayes on Trump’s crypto reserve post. “Just words. Let me know when they get congressional approval to borrow money or revalue the gold price higher. Without that, they have no money to buy bitcoins and shitcoins.”

Lekker Capital CIO Quinn Thompson, who accurately predicted the recent bearish movement in crypto, also expressed skepticism. “If you’re in crypto and cheering this, I don’t know what to tell you,” said Thompson on Sunday. “There’s just no way that legitimizing two of the largest grift and scams in the industry is a good thing. You can blame it on the administration being ignorant, misinformed, or bought, but this isn’t it.”

“The Trump administration is about to give crypto traders the 10th ‘sell the news’ opportunity of the year,” he added.

Crypto-related stocks are also in the process of retracting early gains, including Coinbase (COIN), MicroStrategy (MSTR), Semler Scientific (SMLR), and Hut 8 (HUT).

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