Bitcoin’s quotes once again reminded of their high volatility. The cryptocurrency fell below $ 30,000 for the first time in more than two weeks.
Bitcoin quotes dropped to $ 28,845 overnight, according to data provided by Coindesk. This was the lowest level since January 4. At that time, bitcoin was gathering strength for the rally, which took it to historic highs ($ 41,940). A person who bought a cryptocurrency on that all-time hill and sold it in the last hole must reckon with over 30% losses.
Later in the trading hours, bitcoin’s price is already bouncing, and the cryptocurrency itself is bouncing back to $ 31,000. This also translates into the valuation expressed in zlotys – bitcoin is listed below PLN 120,000, while at the historical peak it cost about PLN 155,000.
Yellen and the bitcoin issue
In addition to the market volatility itself fueled by speculation, the foundations of bitcoin could have been hit by the last statement of Janet Yellen. The new U.S. Treasury secretary, who previously ran the Federal Reserve, suggested on Tuesday that cryptocurrencies should be more regulated.
– Cryptocurrencies are a particular concern, I think many of them are used – at least in a transactional sense – for illegal financing. I think we should investigate solutions by which we could curb this type of action and ensure that this channel is not money laundering, Yellen said in response to a question from Senator Maggie Hassan.
The words of the former head of the American central bank corresponded to the recent statement of the current president of the European Central Bank. Last week, Christine Lagarde called for “Bitcoin to be regulated on a global level.” In this context, it is worth adding that the same ECB is working on a digital variant of the euro, which in some areas can compete with cryptocurrencies. More on this in the article “The digital euro in 5 years. How could the new money work? We translate “.
In the written responses to other senatorial questions published on the pages of the US Senate, Yellen’s position on cryptocurrencies seems to be a bit softer and also recognizes the positive sides of this type of asset.
– I think it’s important to look at the benefits of cryptocurrencies and other digital assets that can improve the efficiency of the financial system. At the same time, we know that they can be used to finance terrorism, facilitate money laundering and support activities that undermine US security. We need to closely monitor how we support their use for lawful activities and curb illegal activities. If approved, I will work closely with the Federal Reserve Board and other regulators to implement an effective regulatory framework for these and other fintech innovations, Yellen wrote.
Interestingly, their supporters also see hopes for increases in cryptocurrency prices in the long term in the words of Janet Yellen. As the economist announced, the Joe Biden administration will not hesitate to issue additional debt, which, according to some commentators, may lead to a weakening of the dollar against bitcoin, the supply of which is limited and grows at an increasingly slower pace.
– Neither the president-elect nor I propose an aid package for the economy without taking into account the public debt. However, now that interest rates are at historic lows, the smartest thing to do is act on a grand scale. In the long term, I think the benefits will outweigh the costs, especially when it comes to helping people who have suffered for a long time, Yellen told the Senate.