Bitcoin’s movement in the cryptocurrency industry may be affected by the US Government’s inclusion of Facebook’s Libra in congress hearings set for the 16th and 17th of July.
Following the announcement, bitcoin prices have seen a significant drop after standing at $13,000 six days ago. It now hovers just below the $10,000 mark and is testing the $9,900 moving average for 50 days, which is a first since the 18th of February.
David Marcus, head of Facebook’s crypto development governing body Calibra, will face two committees, Senate Banking on Tuesday and followed by House Financial Services on Wednesday.
Government Inquiries and Their Effect to BTC Price
This is not the first time that BTC prices shift when the government includes crypto discussions on their agenda. In fact, past figures show that BTC values decline a few days before a hearing, but picks up after a favorable outcome is reached.
For instance, BTC fell on July 12th of last year from $6,820 to only $6,070, just several days before the Financial Services Committee gathering held July 18th. It racked up to $7,400 after the hearing.
It’s also important to note that BTC further rose up to $8,500 on July 24th, showing how satisfactory aftermath also boosts BTC positively.
Earlier last year, February 6th, another committee investigation was held regarding crypto. This led to BTC falling from $12,000 to half its value ten days before the scheduled hearing. It went back to $11,700 on February 20th after favorable findings were issued.
A few years ago, in November 2013, congress discussed BTC for the first time. This led to an upward trend from only $85 to $650 a few weeks before the event. It later boomed to $1,150 nearly two weeks after the hearing.
What Happens To BTC This Time?
Facebook Libra is unlike BTC in that the networking giant plans to govern their cryptocurrency’s movement. This is opposed to BTC’s decentralized trait. What does this signify for the leading crypto?
It seems like BTC could go either way if the recent trend is any indication. As soon as Facebook published Libra last June 18, BTC has gone from $9,000 to as much as $13,800 after just eight days.
While not directly linked, bitcoin will definitely be affected by Facebook’s Libra, depending on how the congress addresses the site’s proposal. It could take a serious hit if lawmakers decide to throw a negative light on the new crypto.
It’s no secret that some authorities aren’t very trusting of crypto. Jerome Powell, Federal Reserve head, brought up possible issues like money laundering and privacy and called for a stop on Libra until such problems are solved. Also, President Trump took to Twitter to relay his criticism on crypto a week ago.
However, bitcoin may see a more positive outcome if the hearings go well for Facebook. It may rise BTC value to more than $13,800 after the hearings. BTC is currently set back to a 4.86% plunge.
Based on the 3-day chart, the RSI shows a bearish divergence. It indicated a below-average closing, which signifies the end of the upward trend since the December lows.
The weekly pattern specifies bullish exhaustion, which signals an expected dive to May 30 high’s $9,097. This can take an uphill turn if the hearings bear positive outcomes.
BTC value is expected to rise again within the next few hours based on the 24-hour movement.
As the crypto community waits for the recent events’ results, it’s worth noting that bitcoin and upcoming currencies like Libra have a huge potential to take over more financial transactions in the near future.