Bitcoin loses more than 10% in two days

Bitcoin loses more than 10% in two days

Published on 21/01/2021 at 3:00 pm

Bitcoin was down sharply on Thursday, after having already recorded a sharp drop the day before, two days after statements by the future US Treasury Secretary, who suggested that the Biden administration could tighten the regulation of cryptomoney.

After dropping more than 4% on Wednesday, Bitcoin fell 7% on Thursday around 2:30am and traded at $32,448.

At a hearing on Tuesday by US senators, Janet Yellen, chosen by the new US president Joe Biden to head the Treasury Department, said that cryptomoney was « mainly used » to finance illegal activities and that it was a « particular concern ».

The government, she added, must examine ways to limit their use and ensure that they do not become a means of laundering dirty money.

« Janet Yellen’s statements did not help Bitcoin, but it is still 40% higher than at the end of December after reaching its peak in early January, » however, said Lou Kerner, a specialist in cryptography and author for the Quantum Economics website.

High volatility

High volatility

The price of bitcoin surpassed $40,000 for the first time on January 8, after a spectacular surge over several weeks.

The most famous of the cryptomoney companies had then settled down before going on a roller coaster ride, a sign of its high volatility.

Several American media outlets also mentioned a report published on Wednesday by BitMEX Research as a possible cause of Bitcoin’s decline.

The research division of this cryptocurrency exchange platform reported a possible fraudulent transaction of Bitcoin, known as « double-spending » and allowing a user to use the same token several times.

However, these rumours have been denied by many Bitcoin specialists who have assured that they have not observed any suspicious movements.

Bitcoin loses more than 10% in two days
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