{"id":232119,"date":"2019-07-11T07:17:45","date_gmt":"2019-07-11T11:17:45","guid":{"rendered":"http:\/\/insidebitcoins.com\/?p=232119"},"modified":"2019-07-11T07:17:45","modified_gmt":"2019-07-11T11:17:45","slug":"bitcoin-recoils-from-13000-powell-slams-facebook-libra-trader-shorts","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/bitcoin-recoils-from-13000-powell-slams-facebook-libra-trader-shorts","title":{"rendered":"Bitcoin Recoils From $13,000 as Powell slams Facebook Libra and Trader Shorts Kick In"},"content":{"rendered":"
Well that didn\u2019t go to plan! Bitcoin (BTC) dropped as much as $1,500 yesterday after venturing into what must now be called the danger zone when it crossed the $13,000 rubicon.<\/p>\n
The speed and steepness of the pullback may suggest that traders had set short positions to be triggered around $13,100. However, the more likely cause of the precipitous decline came from Washington DC.<\/p>\n
The drop to the current $11,400 price coincided with US Federal Reserve chairman Jerome Powell\u2019s testimony to the House Financial Service Committee.<\/p>\n
In addition to giving the expected impression that an interest rate cut was probable at the end of the month, he also joined the rising voices of concern about Facebook\u2019s Libra. In no uncertain terms he stated it should \u201cnot go forward\u201d until all the concerns surrounding the project had been dealt with.<\/p>\n
Powell said: \u201cWhile the project\u2019s sponsors hold out the possibility of public benefits, including improved financial access for consumers, Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability.\u201d<\/p>\n
Facebook\u2019s David Marcus makes his own Congressional appearance before the same committee next week.<\/p>\n
In a letter to the Senate Banking Committee Marcus, who is in charge of Calibra, Facebook\u2019s digital wallet for the coin, admitted that it is \u201ctaking the time to do it right\u201d.<\/p>\n
He said in his letter: \u201cWe understand that big ideas take time, that policymakers and others are raising important questions, and that we can\u2019t do this alone.\u201d<\/p>\n
Facebook presumably anticipated the pushback its plans would produce. Marcus added: \u201cWe want, and need, governments, central banks, regulators, non-profits, and other stakeholders at the table and value all of the feedback we have received.\u201d<\/p>\n
This is a market clearly being buffeted by traders, as opposed to retail investors. The pros have undoubtedly been having a field day in this period of heightened volatility as bitcoin attempts to find a range.<\/p>\n
Booming futures and options markets (see charts below) are also adding to the strength of the price swings, but in terms of the timing of this latest reversal, the Powell testimony is the most likely trigger.<\/p>\n