íàçâàíèå

Is Bitcoin Down 15% Due to Fed Chair’s Criticism of Facebook’s Crypto?

Is Bitcoin Down 15% Due to Fed Chair’s Criticism of Facebook’s Crypto?

The bitcoin price rally this week hit a snag as the world’s most powerful banker publicized his views on the Facebook’s upcoming cryptocurrency project.

The BTC/USD instrument plunged by up to 15.43 percent to settle a session low of $11,169.36 on San Francisco-based Coinbase exchange. The move downside took place after the Federal Reserve Chairman Jerome Powell expressed ‘serious concerns’ about Facebook’s cryptocurrency, Libra. The banker said the social media giant’s project raises issues regarding
“privacy, money laundering, consumer protection, and financial stability.”

These are concerns that should be thoroughly and publicly addressed, he added.

The comments reportedly spooked bitcoin investors at a time when the cryptocurrency was hinting to retest its year-to-date high of $13,868.44. A string of large sell orders seen across the leading cryptocurrency exchanges brought bitcoin down from $13,202.63 session top to $11,620 within just six hours of trading.

Bitcoin Price has Plunged 11.28% in the Last 24 Hours | Image Credits: TradingView.com, Coinbase

Libra Influencing Bitcoin Trends

Facebook’s Libra presented a bullish case for bitcoin. Its introduction in June assisted the world’s first decentralized cryptocurrency rise by as much as 75 percent. Billionaire investor Mike Novogratz believed that Facebook’s foray into the cryptocurrency space validated bitcoin’s long-term potential as an asset, especially before institutional investors. The Galaxy Digital founder told CNBC Squawk Box:

One of the largest companies in the world said we believe in cryptocurrencies. If youre an institutional investor whos getting close and still worried about investing, it makes you that much more confident.

Nevertheless, the possibility of looking at an untampered Facebook cryptocurrency dropped following the concerns shared by many governments and regulators across the world. A minister in France accused Libra of attempting to replace sovereign currencies. US lawmakers went ahead and asked the Libra team to halt their development. China and India, two of the world’s largest remittance beneficiaries, also refused to include the Facebook cryptocurrency into their existing financial systems.

“People valuing Libra is inseparable from the global dollarization trend, and maintaining a strong monetary status may put China in a favorable position. China should take precautions and undertake policy research,” said Xiaochuan Zhou, former governor of People’s Bank of China.

Idiosyncratic Factors

Many believe bitcoin is due for a further drop but not because of panic-selling. To bulls, the cryptocurrency remains in a strong uptrend, and sharp interim corrections are only a reminder of it. Josh Rager, one of the most followed cryptocurrency analyst, tweeted on Sunday that every upside move of bitcoin meets a sharp pullback. The price then consolidates in a range for two to three weeks before continuing to the upwards.

Bitcoin Pullbacks During an Uptrend Scenario | Image Credits: Josh Rager

“Don’t take this chart too seriously,” Rager added, “as no one can predict price action, but Bitcoin likely ranges here. Total guess if BTC continues uptrend to new ATH afterward.”

Novogratz also commented that he expects bitcoin price to consolidate in a wide range of $10,000 and $14,000 before moving upward. He noted that there are factors other than Libra that could drive the cryptocurrency’s price higher. One of them is capital control in China.

A huge amount of the volumes of whats going on in bitcoin and other currencies is coming out of Asia,” he explained.

The post Is Bitcoin Down 15% Due to Fed Chair’s Criticism of Facebook’s Crypto? appeared first on NewsBTC.

11.07.2019 / 08:30 56
Will Facebook Store Data of Libra Cryptocurrency Users Will Facebook Store Data of Libra
Recently, Facebook came under heavy fire for a massive security breach of its network and personal data pilferage of millions of users. However, in a
Social Media Outage Highlights Why Facebook Libra Cryptocurrency Puts Personal Privacy At Risk Social Media Outage Highlights Why
A massive outage on Facebook and Instagram revealed hidden tags given to users photos on the popular social media platforms – tags that are used by
Facebook’s Libra Is a Serious Privacy and National Security Concern Facebook’s Libra Is a Serious Privacy
Facebook is no stranger to Washington’s ire, and this time its stablecoin is on the receiving end. In a letter from 30 Democrats associated groups,
Invstr CEO: Facebook Will Have Anticipated Regulatory Scrutiny Over Crypto Effort Invstr CEO: Facebook Will Have
The CEO of a social investment firm believes that Facebook will have anticipated regulatory scrutiny. Kerim Derhalli of Invstr says recent issues for
US Consumer Groups Urge Regulators to Stop Facebook’s Delve in the Crypto Space US Consumer Groups Urge Regulators to
A long list of US consumer advocacy groups have called upon many of the nation’s regulators to put the brakes on Facebook’s foray into the crypto
Fed Chair: Crypto Has No Intrinsic Value, Not a Store of Value, Great for Money Laundering Fed Chair: Crypto Has No Intrinsic
The Federal Reserve’s new chairman made his stance on cryptocurrency clear to the US House of Representatives on Wednesday. In his view,
Comments (0)
Add a comment
Comment on