Due to the situation surrounding the Libra cryptocurrency and the recent Congress hearing which was held on July 16th and 17th, Bitcoin was under pressure dropping below $10,000.
Bitcoin under pressure from Libra
The Libra investigation may lead to further loss of Bitcoins, since past data shows that BTC is influenced by congressional hearings related to cryptocurrencies.
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Last year, the BTC fell from $6,820 to $6,070 five days before July 12, and then rose to $7,400 on July 18, when the House Financial Services Committee convened a hearing about how cryptography can become a new currency choice.
In addition to concerns over Libra’s verification, Bitcoin’s downfall also occurs a few days after President Trump criticized cryptocurrencies.
"I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity" – Trump wrote in his tweet.
One of the biggest challenges facing cryptocurrency space is that, despite the prominent role of Bitcoins, no digital currency can be considered "widely accepted".
The Bitcoin rate is directly dependent on the Libra hearing. Recall, on July 13, on the eve of the hearing in the Congress of representatives of the Facebook company, a new bill appeared that could presumably prohibit the release of the Libra payment system.