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Home / Business / Bitcoin price dropped after Fed Chairman Powell commented on the Facebook Libra

Bitcoin price dropped after Fed Chairman Powell commented on the Facebook Libra



A woman walks by in front of a Bitcoin exchange office.

Artur Widak | OnlyPhoto | Getty Images

Bitcoin slips off after US Federal Reserve Chairman Jerome Powell showered cold water on Facebook's plans to introduce a crypto currency, $ 11,300 on Thursday, according to CoinDesk data.

Bitcoin had reached a 17-month high over $ 13,000 two weeks ago. It has risen by about 200% since the beginning of the year after big companies like Facebook and Fidelity got involved in this area.

But it started to slip, as Powell said that he had "serious concerns" regarding the planned Digital of Facebook cherished Libra currency. The social network plans to launch the token with a consortium of companies such as Uber and Visa.

"The scale raises serious concerns over privacy, money laundering, consumer protection and financial stability," Powell told a congressional committee on Wednesday. "These are concerns that should be addressed thoroughly and publicly."

Facebook's Libra has the form of a so-called stable coin. These are cryptocurrencies that are often tied to currencies like the dollar. In the case of Libra, the token is backed by a group of government currencies and debt.

Analysts were optimistic about Libra, at least from the perspective that it could pave the way for a stronger introduction of cryptocurrencies. However, the Facebook-led project was clouded by regulatory concerns, with central bankers and politicians around the world skeptical.

"It looks like the market was not ready to hit new highs yet, and (Bitcoin) is now near the bottom of its recent range of $ 1

0,000- $ 14,000," said Mati Greenspan. Senior Market Analyst at eToro CNBC via e-mail on Thursday.

Greenspan added that he was not sure if crypto dealers monitored Powell's comments. "That kind of volatility is normal for Bitcoin," he said.

Bitcoin was not the only virtual currency dropped after Powell's comments. The world's second and third largest crypto currencies – ethers and XRPs – also fell. Ether dropped 13% to $ 270 per token, while the XRP fell 15% to 33 cents.


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