CBX Weekly Newsletter // 17 July 2019
- Bitcoin Price Outlook
- Trump Tweets about Bitcoin, Facebook, and Cryptocurrencies
- Facebook’s Libra Vs U.S. Congress
Bitcoin Price Outlook
Bitcoin, as well as the rest of the cryptocurrency market, fell sharply on July 14 after bitcoin (BTC) endured another $1,400 sell-off, denying the bulls a chance to retest 2019 highs.
On July 14 the price began to decline $1400 from its price tag, dropping below $11,000 and then $10,500 for the first time since July 2. Bulls tried to move the price above $10,800, however, the price kept decreasing retesting $10K.
Other cryptos such as Etherreum (ETH), Litecoin (LTC), XRP (XRP) and EOS (EOS) also began to decrease in value at around the same time as BTC, losing between 15–20% in less than under six hours.
For now, the short term outlook remains neutral, many investors want to get out of the market while others see an opportunity for entry. The levels we need to keep watching are $9,727 which was the recent low and $13,970 which is the high of 2019. so BTC could experience a bounce on this week’s momentum, but in order to confirm a trend, a strong move will need to be accompanied by strong volume.
Trump Tweets about Bitcoin, Facebook, and Cryptocurrencies
Bitcoin (BTC) has reacted to President Donald Trump’s criticism of cryptocurrencies. One of the strongest reasons for the latest decrease in the price of BTC was due to Trump’s not being “a fan” of cryptocurrencies.
After the comments, Bitcoin fell 17% from Friday before paring its drop to 11% at $10,571.
He also mentioned Facebook’s latest project Libra which is a digital currency announced recently by the social network that wants to create a form of “Alipay” or “WeChat” for their users, which can be a direct competitor to the US Dollar.
It is reasonable that a current USA president will not support an alternative currency, however, after Jerome Powell’s comment on Bitcoin saying that it was “a speculative form of digital gold” the market might have thought that the political sentiment regarding digital currencies was changing.
Facebook’s Libra Vs U.S. Congress
During hearings on Tuesday and Wednesday, the social network will defend its ambitious cryptocurrency project, Libra, which was announced in June through a whitepaper. With a long list of major payments and VC firms supporting the project, including Uber, Airbnb, and Visa lawmakers expressed doubts almost immediately, with the U.S. Senate Banking and House Financial Services Committees calling for hearings soon after its unveiling.
David Marcus, Facebook’s blockchain lead, will testify in the Senate and the House this week.
No one knows what can happen during these hearings, Bitcoin as well as other cryptocurrencies will possibly be very volatile. This might also interfere with Libra’s launch which Facebook said last month that it was targeting a 2020 rollout.
The Securities and Exchange Commission (SEC) argues that Libra resembles an exchange-traded fund (ETF), then Facebook’s ability to launch the cryptocurrency will be dependent on the regulator’s approval.
Facebook users will be able to send funds to other users and also to users in Whatsapp, Instagram, and the list of Facebook’s partners in this project, such as Visa, Mastercard, PayPal, and Coinbase have all agreed to act as launch partners for the Libra Association, the governing council that will be tasked to overseeing and guiding the project’s technical developments once it’s launched.
Facebook’s Libra project will not be inside U.S. Jurisdictions in fact, the project will be in Switzerland which lawmakers appear to believe that Facebook might have established the subsidiary to skirt U.S. regulations.
We have to wait and see what happens regarding this matter, whatever the outcome, Bitcoin’s short term price will be likely affected by this event.
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