If after a big rise, you should always expect a correction on the way, the Bitcoin BTC price has fallen by 3000 dollars since yesterday!
At $19,484 yesterday, the bitcoin price dropped to $16,334 in a short time on Kraken and Binance.
A fall in the Bitcoin price which has therefore pushed down the prices of altcoins which sometimes display drops of more than 20% such as LINK, ADA, ALGO, YFI, Ripple XRP.
Ethereum price is currently at $502 and has dropped to $482.
Litecoin LTC is at $75 and has dropped to $71.
Ripple XRP price has stabilized at $0.50.
If $18,000 did not hold like the other day, the BTC price therefore stopped at $16,334, with Bitcoin currently at $16,947.
A very unstable BTC price therefore and which above all put the crypto market in the red after a period of rise which saw cryptocurrencies like Ripple XRP double in price in a short time.
While a correction was foreseeable for Bitcoin BTC after such a recent price hike, some are looking for other reasons that could explain the sharp drop in BTC price and Coinbase is being singled out for its statements on Twitter.
Indeed, Coinbase CEO Brian Armstrong posted a series of tweets citing rumors that the US Treasury and its Secretary Steven Mnuchin would prepare new regulations regarding self-hosted crypto wallets before the end of Mnuchin’s tenure under the presidency of Donald Trump.
“Last week we heard rumors that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I’m concerned that this would have unintended side effects, and wanted to share those concerns.”
Last week we heard rumors that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I'm concerned that this would have unintended side effects, and wanted to share those concerns.
— Brian Armstrong (@brian_armstrong) November 25, 2020
As we saw in a previous article, the Secretary of the United States Treasury, Steven Mnuchin, had notably received instructions from Donald Trump to “go after Bitcoin”.
A Donald Trump who is not a fan of BTC as he has stated in the past.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
If Joe Biden is the best presidential candidate for Bitcoin, Donald Trump and Steve Mnuchin are leaving soon and could indeed hurt the crypto industry very well by instituting binding regulations for Bitcoin and cryptocurrencies, just before their departures.
While Brian Armstrong’s statements and concerns are legitimate, they may also be behind this sharp fall in Bitcoin BTC due to the uncertainty (fud) that the Coinbase CEO may have created in the crypto market.
In other posts on Twitter, the Coinbase CEO details why he fears the measures and regulations he is talking about.
“This sounds like a reasonable idea on the surface, but it is a bad idea in practice because it is often impractical to collect identifying information on a recipient in the cryptoeconomy. Let me explain why.
This would be bad for America because it would force U.S. consumers to use foreign unregulated crypto companies to get access to these services. And long term, I believe this would put America’s status as a financial hub at risk.”
This sounds like a reasonable idea on the surface, but it is a bad idea in practice because it is often impractical to collect identifying information on a recipient in the cryptoeconomy. Let me explain why.
— Brian Armstrong (@brian_armstrong) November 25, 2020
You can read the rest of his statements on his Twitter account.
Normal correction of the Bitcoin price or panic selling from BTC holders following statements by the CEO of Coinbase, the crypto market is very volatile, so we must expect sharp rises and falls which can sometimes reach 30% for the Bitcoin price.
Unfounded or not, the rumors evoked by Brian Armstrong would come as no surprise from the government of Donald Trump, the incumbent president who still refuses to publicly accept his defeat and who could leave a mess behind him.
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