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Bitcoin downsized after Fed Chair's Powell's Facebook Libra comments



A woman passes in front of a Bitcoin exchange store.

Artur Widak | NurPhoto | Getty Images

Bitcoin glides after the Federal Reserve mayor Jerome Powell poured cold water on Facebook's plans to launch a crypto competition.

The world's most famous digital coin – which has experienced a meteoric increase in 2019 – fell 12% to approx. $ 11,300 on Thursday, according to CoinDesk data.

Bitcoin had hit a 1

7 month high over $ 13,000 just two weeks ago. It is currently up to 200% since the beginning of the year, after gaining momentum as big companies like Facebook and Fidelity get involved in the room.

But it began to slip as Powell said he kept "serious concerns" about Facebook's planned digital currency Libra. The social network wants to launch the token along with a consortium of companies including Uber and Visa.

"Libra raises serious concerns about privacy, money laundering, consumer protection, financial stability," Powell said at a congressional Wednesday. "These are concerns that should be thoroughly and publicly addressed."

Facebook's Libra is in the form of what is called stablecoin. These are cryptographic curves often associated with currencies such as the dollar. In the case of Libras, the token is supported by a group of government currencies and debt securities.

Analysts have been bullish at Libra, at least from the perspective that it could pave the way for more adoption of crypto curve. But the Facebook-led project has been flooded with regulatory concerns, with central bankers and politicians around the world expressing skepticism.

"It seems that the market was not ready to break a new height yet, and (bitcoin) is now back near the low end of its latest lineup" of $ 10,000 to $ 14,000, Mati Greenspan said. senior market analyst at eToro CNBC via e-mail Thursday.

Greenspan added that he was unsure about crypto dealers monitoring Powell's comments. "This kind of volatility is quite common for Bitcoin," he said.

Bitcoin was not the only virtual currency that dropped after Powell's comments. The world's second and third largest crypto course values ​​- ether and XRP – also fell. Ether was down 13% at $ 270 a token, while XRP fell 15% to about 33 cents.


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