
Bitcoin dives below the crucial support following heat from Congressmen
- Mr. Mark Zuckerberg of Facebook appeared in front of the U.S House of Representatives.
- U.S Congressmen unconvinced of the potential benefits of digital currencies.
- Crypto market under pressure; Bitcoin breaks the crucial support at $7,800.
- Cryptocurrencies are a threat to the traditional financial system - Congressman
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The second half of the trading session on Wednesday, October 23rd, 2019 came bearing bad news for the crypto market, specifically for the largest digital currency by market cap, Bitcoin. Mr. Mark Zuckerberg, the current CEO of Facebook had appeared in front of the House Financial Services Committee on Wednesday to testify and defend Facebook’s recently announced plan of launching a new cryptocurrency by the name of Libra.
U.S Congressmen See Cryptocurrencies As A Tool For Criminal Activities
Copy link to sectionAs per the sources, things didn’t proceed as expected in Congress with the members blindsiding the potential benefits of the digital currencies and accentuating how it could be used as a tool for criminal activities like money laundering and even terrorism.
Following the news, Bitcoin was reported to have lost around 9% within a matter of an hour. Trading at $7,435.26 later on Wednesday, BTC printed its lowest level yesterday since June of 2019.
In July 2019, Mr. David Marcus, the current head of the Libra project and former executive at PayPal, had also appeared in the U.S House of Representatives. A similar stance from the members of Congress against the cryptocurrencies was reported following the previous meeting as well.
According to Mr. Jeff Dorman, currently serving Arca as a Chief Investment Officer, the steep decline of yesterday in the crypto market is largely attributed to the rising scrutiny that has been threatening the cryptocurrencies for a few months. Falling trading volumes and insufficient positive catalysts further helped the bears in taking charge of the market.
Bitcoin Breaks The Crucial Support At $7,800
Copy link to sectionCurrently trading around $7,422 level, BTC has broken the previously highlighted strong support at $7,800. As per the earlier forecast, as long as this support was in place, the bullish indication remained intact and further upward rallies could have been expected. Trading significantly lower than the support, the Bitcoin analysts have started to lean more towards an imminent bearish trend that could potentially take the price further down.
The forecast for cryptocurrencies, especially Bitcoin, for the upcoming year had been largely positive with the likes of BayernLB of Germany claiming it to hike to $90,000 by the end of 2020. However, with the rising scrutiny and focus on how the digital currencies threaten the traditional financial system and can be used for criminal activities, such forecasts keep moving further away from realization.
As Mr. Brad Sherman stated in the House of Representative yesterday that there are only two outcomes that can be linked with cryptocurrencies. Either it fails costs hundreds of thousands of dollars to the investors, or it does, in which case it threatens the reserve status of the U.S dollar and the global financial leadership of the country at large.
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