Categories: Industry

Bitcoin Dropped Below $10K Before Facebook Libra’s Congressional Hearing

US President Donald Trump tweeted against Bitcoin and Libra. Donald Trump Tweeted that “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money and whose value is highly volatile based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior including drug trade and other illegal activity…”.  On his second tweet, he went after Facebook’s libra saying that “Similarly, Facebook Libra’s ‘virtual currency’ will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National”.

On July 16 and 17, there will be a US congressional hearing on Facebook’s Libra. After this report, Bitcoin’s price slumped below $10K. Few days beforehand, Bitcoin was seen near $13K. David Marcus, who is Facebook’s head of Calibra, is scheduled to appear before the lawmakers.

Bitcoin was Expected to Drop?

Should you be selling your Bitcoin now that it dropped below $10,000? If you are going to look at past data, it shows that Bitcoin actually tends to drop before a congressional hearing. For instance, last year, from $6,820, Bitcoin dropped to $6,070 days before the Committee on Financial Services had a hearing on “crypto as a new form of money”.

The same thing happened when Bitcoin dropped as much as $6,000 coming from $12K leading up to the hearing on February 8, 2018 wherein the Securities Exchange Commission (SEC) chairman and the head of the Commodity Futures Trading Commission faced the Senate Banking Committee. But since the hearing was positive for Bitcoin, the cryptocurrency spiked back up to $11,700 by February 20, 2018.

What’s Next for Bitcoin?

What could be next for Bitcoin? Many fear that Facebook’s version of a cryptocurrency is actually bad for the industry. For instance, it is not exactly like Bitcoin that is decentralized in nature. Instead, you have companies such as PayPal that can push their interest. It is also feared that Facebook can have an influence on countries.

John McAfee, who is known for his Antivirus software, made a bold prediction that Bitcoin is about to hit $1 million by 2020. He said that “Bitcoin is at mid 10’s and people worry”. He also added that “It’s rising drastically. I’m still positive about $1 mil BTC price by the end of 2020. Alt coins like MTC and Apollo will rise ten times more”.

And an even bolder prediction is that by 10 years, he believes that “there’ll be no fiat anywhere in the world…everything will be cryptocurrency”.

Could this actually become a reality? If you are going to ask someone like Anthony Pompliano who is the co-founder of Morgan Creek Digital Assets, he has a similar bullish prediction on Bitcoin saying that we can expect Bitcoin to hit $100K by 2021.

Could it be possible that Bitcoin is on its way up and could even be able to beat the all-time high? In 2017, we’ve seen Bitcoin go up in value mainly because of FOMO. Cryptocurrencies became mainstream and people started investing without even understanding the technology behind it. Scams and even tokens that don’t actually have any use have become rampant. This time around, has the market really matured?

 

Lee Jenkins

Lee is our resident cryptocurrency expert who knows the ins and outs of each coin and the blockchain technology behind them. You’ll find that most of our technical guides are written or overseen by Lee and they are all easily digestible by the new and experienced alike, so there is no better place to learn blockchain 101 than here. Occasionally you may see a news article from him if it’s tech related!

Share
Published by
Lee Jenkins

Recent Posts

PayPal Has Just Launched the PayPal USD (PYUSD) Stablecoin

The biggest news in the crypto universe last week was the launch of PayPal’s own…

1 year ago

Country of Georgia Signs Memorandum of Understanding (MOU) with Tether

Earlier this week, the Government of Georgia inked a Memorandum of Understanding (MOU) with Tether,…

1 year ago

American Traders Using Palau Digital Residency to Access Crypto Services Like Binance

As reported by the Wall Street Journal, cryptocurrency investors are taking advantage of the Palau…

1 year ago

El Salvador to Harness Solar and Wind Energy for Bitcoin Mining

The country of El Salvador is a true cryptocurrency pioneer. In 2021, it became the…

1 year ago

Tether Plans to Buy $222M in BTC to Back Its USDT Stablecoin

By definition, stablecoins are cryptocurrencies that are meant to maintain stability in relation to a…

2 years ago

BTC Wallets of Russian Spies Exposed by a Hacker

An unidentified hacker has reportedly exposed a number of Bitcoin (BTC) wallets allegedly belonging to…

2 years ago