Bitcoin Price Drops Below $7,500 Ahead of Zuckerberg’s Libra Testimony in Congress
As Facebook’s Mark Zuckerberg prepares to testify in front of Congress, Bitcoin loses $500 to drop below $7,500.
Bitcoin, which had been trading in a relatively narrow range since mid-October shed more than $500 to go from $8,000 to under $7,500 shortly before Facebook’s Mark Zuckerberg is scheduled to testify before Congress on issues pertaining to its Libra digital currency project.
The price drop is alarming, given how Bitcoin had earlier broken down from a descending triangle near the end of September, abandoning the $10,000 price point and testing the key support at $7,750. In the following days, BTC price continued to test the support and failing to bounce back above the immediate resistance at $8,700.
While the Bitwise ETF rejection was an expected setback earlier this month, the lack of new cash flow and retail interest has kept Bitcoin’s price under pressure. Now, with Libra under the spotlight once again, it appears that investors are taking a cautionary approach.
Facebook’s Libra project aims to become a global payment solution, particularly for the unbanked but has run into major regulatory hurdles. Recently, some of the project’s key members, including payment solution providers such as Paypal, Visa, Mastercard and Stripe decided to withdraw due to governmental pressure.
If Zuckerberg fails to convince Congress on the benefits of Libra and digital currencies, it may be seen as a blow to Bitcoin as well, which can explain the recent drop in price.
Bitcoin currently trades at $7,470 and Zuckerberg’s Congress testimony is starting just now, at 14:00 UTC.