Will Congressional Hearings Cause Further Tumbles?
The past few months have been kind to Bitcoin. The world's first cryptocurrency went from $3200 on December the 15th 2019 to yearly highs of $13,438 on June 26th. This incredible rise has managed to draw in a lot of attention. Many crypto-pundits have declared that "crypto-winter" (referring to the 2018 decline in Bitcoin) was over. It appears that Bitcoin might have brought in negative attention as well.
It seems the markets are currently dipping. Bitcoin's value has taken quite a hit and for the first time in July dropped below $10,000. As of the time of writing Bitcoin's price average is $9750. It seems that Bitcoin is retracing its steps back to test $10,000 and will perhaps head higher.
Reasons for the Dip
The biggest reason for the current dip seems to be the US government. Congressional hearing on Libra and its threat to USD dominance seem to have shaken the markets. In addition to that, President Trump has tweeted a negative tweet on Bitcoin two days ago which might have added to fear in the market.
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....â Donald J. Trump (@realDonaldTrump) July 12, 2019
While the entire market is in decline in its fiat evaluation, alt season might be on its way. For the first time in months BTC dominance has began declining. BTC dominance peaked at 66.7 percent earlier today and now stands on 65.6%. This means that smaller alts are taking steps forward in their BTC value. The biggest gainer was Litecoin which rose 10% vs Bitcoin.
Minor Correction or Back to Winter?
Currently it seems that US government intervention is causing fear in the markets. While this could temporarily stifle Bitcoin's growth, it is doubtful that it will cause a market downtrend at this point.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado