Bitcoin Falls Back Below $10,000 as Cryptocurrencies Under Fire

It seems that, when it comes to Bitcoin, Facebook giveth and Facebook taketh away. Just a few weeks after the announcement of Libra helped push Bitcoin over the $10,000 mark and as high as $14,000, the leading cryptocurrency is currently slumping and has fallen back down below that five-figure floor. This bearish retreat comes as regulators and lawmakers continue to take their shots at Libra and, in some cases, the concept of cryptocurrencies themselves.

As we’ve previously discussed, Facebook’s Libra has been scrutinized by congressional committees, the Federal Reserve, and others. In fact this week the company made it clear that the cryptocurrency won’t launch until regulators are fully informed of and satisfied with the plans. However the argument over Libra has evolved into a discussion of other cryptocurrencies including Bitcoin.

Last week President Trump took to Twitter to share his disapproval of crypto, writing, “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.” Then this week, as Forbes reports, United States Treasury Secretary Steven Mnuchin echoed those sentiments, telling reporters that cryptocurrencies were “indeed a national security issue.” The secretary continued, “Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking.” He also asserted that Libra “could be misused by money launderers and terrorist financiers.”

While the words of both men may sound pretty damning, some crypto enthusiasts actually had positive reactions. Among them is Elliptic chief scientist Tom Robinson who told Forbes, “Steve Mnuchin’s press conference [was] actually bullish news for the future of cryptocurrencies long term.” Robinson went on to note, “The U.S. has had a clear anti-money laundering regulatory framework around cryptocurrencies for several years now, while the rest of the world, led by the Financial Action Task Force (FATF), is rapidly adopting anti-money laundering regulation focused on maintaining oversight of cryptocurrency service providers.”

Obviously not all investors are feeling as rosy as Robinson as the price of Bitcoin currently sits at under $9,700. That said, it’s worth noting that the price is nearly three times higher than where the currency was earlier this year. With that, perhaps Robinson and other bulls have a point when they suggest that Bitcoin will eventually beat these regulatory setbacks and reach new levels of popularity down the road.

Also published on Medium.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

U.S. Economy Added 263,000 Jobs in November 2022

Over the past several months, the United States economy has repeatedly offered mixed signals. Although gross domestic product results would suggest we're headed for a recession, the Federal Reserve has been forced to hike interest rates in a bid to slow inflation. Now, the latest figures also show that the economy continues to create jobs at a decent clip. According to the latest Bureau of Labor Statistics report, the U.S....

Amex Launches Digital B2B Payments Platform Business Link

For consumers, these days, there's no shortage of peer-to-peer apps they can use to move money, with some popular examples including Cash App, Venmo, and Zelle. As for businesses, the list of options for sending money to vendors may be more limited. Now, a well-known credit card company and small business supporter is introducing a new platform for this purpose. This week, American Express announced the launch of Amex Business...

Carbon Credit API Cloverly Joins Visa's FinTech Partner Connect 

Last year, Visa introduced the FinTech Partner Connect program to the United States, with the goal of introducing institutions to vetted startups that could help them expand their product offerings. Now, the latest company to join the program is Cloverly. Founded in 2019, Cloverly is an API for carbon credits, allowing businesses and consumers to help fight climate change. As the company points out, with the Visa partnership, Visa clients...