The price of the first cryptocurrency rapidly went down shortly after the beginning of the Senate hearings of the Libra digital currency and in a short period of time fell first below $ 10,000 and then to $ 9,600. On some exchanges, the decline was even deeper – below $ 9,500.
Before the event, Bitcoin was trading at $ 10,750.
Previously, experts have already suggested that today’s hearing can have a significant impact on the short-term price movements of Bitcoin, and, apparently, their predictions come true.
The reason why the situation around Libra is associated with Bitcoin is quite simple: this is a general approach of US lawmakers and regulators to a new class of assets, in which the project from Facebook is now trying to win.
Despite the fact that the main theses that Marcus was going to present to the American legislators today were published the day before, his answers to the questions asked did not always sound convincing.
Sometimes it seemed that the head of the blockchain division of Facebook was simply lost in an unaccustomed setting, as indicated by the occasional uncertain pauses that Marcus took to reflect on the answers.
In particular, he could not answer the questions about how Facebook intends to resolve issues with past leaks of user data, and could not say anything about the ambiguous social network policy, which resulted in, as the senators say, intervention in the US presidential election in 2016 by Russia.
David Marcus was also asked questions about why Libra decided to register in Switzerland instead of the United States, to which the representatives of the cryptocurrency community did not give a direct and obvious answer to the cryptocurrency community, hiding behind common phrases.
At the time of publication, the weighted average rate of Bitcoin, according to CoinMarketCap, was $ 9,720.