It was less than a month ago that Bitcoin enthusiasts and the larger cryptocurrency market were lauding Libra as a catalyst to the ensuing bull-run. However, good times were never going to last long.
Over the past two weeks, Facebook has received a wave of criticism from the likes of the Federal Reserve Chair, the House Financial Services Committee, the Treasury Secretary, the Senate Banking Committee, and even the President himself. While Libra’s bright future has turned darker, or at least delayed, Bitcoin’s present is back in the red.
After breaking the $13,000 mark for the second time in a month last week, Bitcoin dropped over $1,500 in valuation, owing to the ‘concerning’ comments made by Jerome Powell, the Fed Chair, followed by the ‘Trump Pump.’ Following the Treasury Secretary’s press briefing on July 15, Bitcoin dropped below $11,000 and looked weak. As the Senate hearing beckoned, a drop to a four-figure valuation was on the cards.
From Senators questioning the age-old privacy problem of Facebook to calling Libra outright delusional, they reigned down on David Marcus, lead of the Libra Project and VP of Messaging Products at Facebook. The aging US lawmakers were concerned about Libra’s plan to overhaul national currencies and manipulate monetary policies, and with the “massive reach” of Facebook, that prospect looks even more menacing.
Marcus however, right from the outset maintained a pro-regulatory stance, opting to adhere to any regulation and work with any regulatory body to push out Libra. Facebook executives had previously stated that Libra was announced well ahead of schedule, in anticipation of the regulatory mess it would encounter. And so it has.
Source: Trading View
Bitcoin however, is taking the short end of the ‘GlobalCoin’ stick.