The world’s largest cryptocurrency by market value closed yesterday at $9,412.81 on Bitstamp; down 13.25% from its opening price of $10,848. This is the second-largest single-day drop for the coin in 2019. The first was a 13.67% drop that occurred on June 27th.
Bitcoin Price Drop
Speculation for why the drop has occurred is rife. Many are citing the growing calls for regulation of Facebook’s cryptocurrency Libra project along with cryptocurrencies in general as the biggest catalyst.
It’s been noted that Bitcoin has moved in tandem with news regarding Facebook’s Libra. For instance, after the tech giant unveiled its currency on June 18, Bitcoin price rallied from $9,000 to $13,880 USD in the week following.
It stands to reason, then, that the shift in sentiment is directly linked to a US hearing yesterday that attacked Facebook’s project. The hearing pulled no punches; senators called the company “delusional and untrustworthy” and questioned the social media giant on how it was planning to prevent money laundering.
Last week, President Donald Trump also attacked Libra when he took to Twitter to call for banking regulation for Bitcoin and Facebook’s coin. The following day, Bitcoin price began to decline, very possibly in reaction to the US President’s rant on Twitter.
Because of Facebook’s global presence, the impact its Libra-currency might have on economies everywhere has caused concern. The project has amassed a mix of praise and scrutiny from leaders and financial institutions, amongst others.
But the Libra cryptocurrency has brought to the fore the issue or need for regulation and now, investors are worried that the project will end up fast-tracking regulations for the entire crypto market.
What are your thoughts on this? Do you expect Bitcoin price to decline further?
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