Bitcoin Loses More than 10% in Two Days

Bitcoin fell sharply on Thursday, having already recorded a sharp drop the day before, two days after statements by the future US Secretary of the Treasury, who hinted that the Biden administration could strengthen the regulation of cryptocurrencies.

After dropping more than 4% on Wednesday, bitcoin fell 7% Thursday around 2:30 a.m. and traded at $ 32,448.

Hearing on Tuesday by US senators, Janet Yellen, chosen by the new US President Joe Biden to head the Treasury Department, estimated that cryptocurrencies were “mainly used” for the financing of illicit activities and that they represented a “concern particular ”.

The government, she added, needs to look at ways to limit their use and ensure that they do not become a way to launder dirty money.

“Janet Yellen’s statements did not help bitcoin, but it remains up 40% compared to the end of December after reaching its peak in early January,” however reassured Lou Kerner, cryptocurrency specialist and author for the Quantum Economics website.

The price of bitcoin indeed exceeded $ 40,000 for the first time on January 8, after a spectacular surge lasting several weeks.

The most famous cryptocurrency then settled down before going on a roller coaster, a sign of its high volatility.

Several US media have also cited a report published Wednesday by BitMEX Research as a possible cause of the decline in bitcoin.

The research division of this cryptocurrency exchange has reported on a possible fraudulent bitcoin transaction, known as a ‘double spend’ and allowing a user to use the same token multiple times.

These rumors have however been denied by many bitcoin specialists who have assured that they have not observed any suspicious movement.

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