Bitcoin slumps 10% to a ten-day low, amid fears Biden’s administration will bring in tighter regulation
Bitcoin slumped 10 per cent to a ten-day low, retreating further from record highs, with traders citing fears of tighter US regulation.
The world’s most popular crypto-currency, it fell as low as $31,977. It has lost nearly a quarter since touching a record $42,000 on January 8.
The pullback comes amid growing concerns that bitcoin is one of a number of financial market price bubbles.
Crypto-slump: Bitcoin fell as low as $31,977, meaning it has lost nearly a quarter since touching a record $42,000 on January 8.
Fears President Biden’s administration could attempt to regulate crypto-currencies have also weighed on sentiment.
During a Senate hearing on Tuesday, Janet Yellen, Biden’s pick to head the US Treasury, expressed concerns that crypto-currencies could be used to finance illegal activities.
Joseph Edwards of crypto-currency broker Enigma Securities said these comments had a substantial impact.
‘The action over the last 36 hours or so has largely been rippling outwards from the Janet Yellen comments,’ he said, adding it was still unclear exactly what, if any moves the Biden administration would take.
‘We do think it’s probably still just a lapse in momentum rather than a sea change, though.’