BTC Price Down 15% in 24-Hour Period: The Libra Effect

At time of writing the BTC price is hovering just below the US$11,000 mark at US$10978.66.

It has been a harsh reality check for some, with expectations of an unfettered bull run being defied.

This is what the chart looks like over the last 5-days:

Source: tradingview.com

There was a significant spike about 3/4ths through this period followed by a strong slide.

BTC price shift bound up with Libra hearings

Some of the recent hype surrounding bitcoin can be traced back to Facebook’s recent foray into the crypto-sphere with its Libra project.

Besides being the antithesis of what blockchain is all about, Libra has also garnered the attention of lawmakers who moved remarkably quickly to delve into the project.

The House Financial Services Committee will hold a hearing on Libra next month, and the Senate Banking Committee will subsequently hold its own hearing a day after.

CoinDesk reported yesterday that the House Financial Services Committee heard from Financial Crime Enforcement Network (FinCEN) director Kenneth Blanco who had some stern words about the project:

‘We’ve seen the significant damage that foreign adversaries and bad actors have wrought on our democracy through Facebook’s platform, and that was simply through messaging and advertising… Before we allow such a giant corporation to begin processing millions to billions of financial transactions, we have to study these issues and ensure we have the tools and guardrails in place to deter terrorists, extremists, and/or enemies from utilizing such a platform to do harm to our nation.’

Libra it appears, has drawn the ire regulators and this could be fueling some fear in the market about a corresponding backlash against the cherished BTC.

My colleagues answer some important questions about BTC in the following video:

Sam Volkering’s take on the Libra project is particularly on point.

Regards,

Lachlann Tierney

For Money Morning