Trump blames Biden administration for market turmoil, Bitcoin falls more than 16%

A dramatic downturn has hit the financial markets, with over $2 trillion wiped out within the first trading hour. The cryptocurrency sector has also been severely affected, reminiscent of the volatility experienced in 2021. Major online brokerages such as Charles Schwab, Fidelity, and Vanguard faced technical difficulties, disrupting services for thousands of users. Bitcoin has fallen by more than 16%, and Ether has recorded its steepest drop since 2021. Massive sell-offs have led to the liquidation of 305,759 traders, amounting to $1.22 billion, pushing Bitcoin below $50,000.

Trump’s Response

Former President Donald Trump took to his platform, Truth Social, to attribute the market crash to the Biden administration’s leadership. He specifically criticised President Biden and Vice President Kamala Harris, suggesting that their policies and governance have led to the current financial crisis. Trump framed the upcoming 2024 election as a choice between a return to economic prosperity under his leadership or a continued decline under what he termed the "Kamala Crash." He also raised alarms about a potential Great Depression and the looming threat of World War III.

Geopolitical Tensions

The market instability is exacerbated by escalating tensions in the Middle East, contributing to global uncertainty. Social media is rife with speculation and frequent advisories about the potential for larger conflicts, further unsettling investors and traders worldwide. This atmosphere of fear and uncertainty is driving significant market movements and creating a challenging environment for financial stability.