The Bitcoin Price Surged Because Mnuchin Made This Crucial Remark

Journalist:
July 15, 2019

The bitcoin price surged to an intraday high on Monday after US Treasury Secretary Steven Mnuchin made a crucial comment during his surprise press conference on cryptocurrency regulation.

Bitcoin Price Shoots to Daily High During Mnuchin Press Conference

The flagship cryptocurrency, which traded down after Mnuchin referred to it as a “national security issue,” suddenly shot higher midway through a question-and-answer session when a reporter asked him what he believed was driving its mammoth price increase.

The bitcoin price exploded higher midway through US Treasury Secretary Steven Mnuchin’s press conference. | Source: TradingView

No, Mnuchin didn’t respond by explaining that cryptocurrency will supplant gold as the world’s favorite safe haven asset, and he didn’t pull any punches about its perceived association with illicit activities.

Mnuchin: Do Your Own Research

Crucially, though, he declined to allege that illicit activity was fueling bitcoin’s bull run, nor did he state that it was his duty to stop US residents from investing in cryptocurrency for speculative reasons.

Rather, he warned them to “be careful” and do their own research – fundamentally the same advice you’d expect from any level-headed crypto insider.

Crypto analyst Mati Greenspan extrapolated his comment a step further, stating that this means “Bitcoin trading on Wall Street is still on the table.”

Two More Important Distinctions

Treasury Secretary Mnuchin made two more key distinctions that helped the market regain its footing.

First, he distinguished between Facebook’s Libra – a cryptocurrency launched by a consortium of private companies – and bitcoin.

Second, he appeared to carve out legal status for cryptocurrencies by admonishing the industry to submit to anti-money laundering regulations and warning that the government would target illicit use.

Some in the industry feared the White House might seek a total ban, particularly after President Trump dumped on bitcoin last week. Instead, Mnuchin more or less told crypto companies and users to obey the law.

Bitcoin Price Targets $11,000

Bitcoin continued to trend higher following the conclusion of Mnuchin’s press conference.

By 3:30 pm ET, BTC/USD had climbed as high as $10,943 on Bitstamp – less than a day after breaching the $10,000 level in a brutal sell-off.

The bitcoin price last traded at $10,897, which represents a 24-hour increase of 3.44% and translates into a roughly $194 billion market cap.

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Last modified (UTC): July 15, 2019 22:44

Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.