Daily Management Review

Fed's Powell doubts Facebook's Libra, Bitcoin drops sharply


The world's most famous cryptocurrency, which experienced yet another parabolic growth in 2019, collapsed by 12% to $ 11,300 on Thursday. Bitcoin exceeded the 17-month high above $ 13,000 before the fall, whereas from the beginning of the year it grew by about 200%. The impulse has been increasing as companies like Facebook and Fidelity were entering the cryptosphere.

However, the coin began to fall sharply when Powell announced that he was “seriously worried” about the launch of Libra. Facebook plans to launch the token together with companies such as Uber and Visa.

“Libra raises serious concerns about confidentiality, protection of consumer information, and financial stability,” said Powell to Congress on Wednesday. “These are issues that need to be carefully and publicly addressed.”

Analysts are optimistic about prospects of Libra, as the coin can pave the way for other cryptocurrencies. However, the Facebook project has faced a fierce response from regulators, central banks and politicians around the world.

“It seems that the market was not ready for new highs, and now a correctional pullback to the lower boundary of the recent range is underway,” said Mati Greenspan, a leading market analyst at eToro, in an interview with CNBC. However, the very fact that the participants of the crypto market are following such statements of the Fed's head is also surprising.

source: cnbc.com