Bitcoin’s recent downfall isn’t a good sign for the crypto market. It is now fluctuating at a lower level than before and has managed to go down even below US $10,000. At the time of writing this, Bitcoin was traded at a meager $9,685 compared to highs of $13,000 at the end of June. Investors were quick to link this with the Congressional hearing of Facebook happening on the 16th and 17th of July. While many believe it may be just a coincidence, many veterans in the market believe otherwise.
Bitcoin’s Direct Connection With Hearings
Bitcoin’s price has somewhat of a direct relationship with events deciding the future of cryptocurrency. The hearings that take place have directly affected Bitcoin’s growth in the past too. First of all, the days leading up to the hearing have been bad for Bitcoin as it has shown bearish behavior. Also, today on 16th it has been at its lowest in a month at $9,600. While Facebook’s Libra jacked-up Bitcoin’s rally from $9,800 to $13,000, it has leveled it now leading up to the hearing.
In the past, the congressional hearings have influenced the price of BTC. Last year, Bitcoin’s price fell from $6,820 to $6,070 in a matter of five days in July leading up to a hearing regarding the future of Crypto. But, when a suitable outcome came, it rallied up to $7,400 due to a favorable outcome from the hearing. More examples of this include a hearing in February of the same year and in November of 2013.
About the Hearing & Bitcoin’s Connection to it
The Congressional Hearing of Facebook has been held to discuss its new project, Libra. The Crypto was expected to be heavily scrutinized because of the skepticism of the US Congress towards cryptocurrencies. The Facebook head of Calibra – David Marcus has been asked to testify to different lawmakers on the Senate Banking Committee on the 16th and House Financial Services on the 17th. The impact of the hearings will be seen through the fluctuations of Bitcoin’s price.
The cynical behavior of such committees towards Libra may not be good for Bitcoin. The decisions taken in this hearing may send down massive shockwaves in the crypto market. While these hearings go on, the anxiousness is felt throughout the market.