One of the biggest stories of the year has been the roaring comeback made by Bitcoin after it went through a disappointing year in 2018. Throughout the first half of the year, the cryptocurrency made hefty gains. However, the month of July has been a bit of a bumpy ride for Bitcoin as a range of factors has affected the price.
The past week has been particularly painful for the cryptocurrency. Over the course of the past seven days, the cryptocurrency has slumped by as much as 27%, and now, it has gone below the level of $10,000 as well. On July 10, the token was trading at $13,200.
This past week the President of the United States Donald Trump criticized Bitcoin and other cryptocurrencies in a tweet. In his tweet, Trump stated that Bitcoin is responsible for billions of dollars worth of illegal activity, and experts believe that Trump’s claims had a negative impact on the cryptocurrency.
If the most powerful person in the world believes that Bitcoin is a dangerous thing, then it is almost certainly going to have an effect on its price. It is particularly problematic since 2019 was supposed to be the year in which institutional money was to come in and push the price up considerably. As a matter of fact, Fidelity has already launched a Bitcoin fund that is solely meant for its institutional investors.
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On top of that, the announcement by Facebook about the launch of Libra next year has caused its fair share of disruption as well. Libra has also come in for strong criticism from top policymakers like Jerome Powell, the head of the Federal Reserve. Those comments wrecked the crypto market last week, but the current week could be a crucial one as Facebook goes into Federal hearings about Libra. If it can come out of it unscathed, then there is a possibility of Bitcoin getting a bit of a reprieve.
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