Bitcoin Falls as Miners Sell-Off with Negative comments from Yellen

Bitcoin and the entire crypto market have been facing some intense selling pressure as of late that has hampered the uptrend BTC formed throughout the past couple of months.

It remains unclear whether this trend has been invalidated, but bulls certainly have some serious work in front of them if they want to reverse the recent selloff.

Meanwhile, former Goldman Sachs CEO Lloyd Blankfein pooh-poohed bitcoin’s “store of value” and “medium of exchange” propositions on CNBC Monday, stressing that if the cryptocurrency ever grew to a substantial size the regulators would likely move to shut it down.

The finance executive asserted that Bitcoin users have no way of knowing if enemy states like North Korea and Iran are counter-parties to their transactions. He then seemingly implied there's no way to monitor bitcoin transactions, ignoring entirely the cryptocurrency's inherent traceability.

Following the confirmation of Janet Yellen as the new secretary of the United States Treasury, the department’s dreaded cryptocurrency monitoring rule is now back in motion and the public has 60 days to comment on the proposed self-hosted wallet requirement.

Institutions are pressing the pause button on their bitcoin purchases partly because many are trying to get a read from the new Biden administration’s attitude towards crypto-related policies and regulations. Negative comments on cryptocurrencies from new Treasury Secretary Janet Yellen have raised some worries around possible added controls over the crypto markets.

Speaking at a Senate Finance Committee hearing on her anticipated nomination after President-elect Joe Biden takes office tomorrow, Yellen said the U.S. should be aware of emerging tools for terrorist financing.

“The technologies to accomplish this change over time and we need to make sure that our methods for dealing with these matters, with tech terrorist financing, change along with changing technology, cryptocurrencies are a particular concern,” she said in response to a question by Sen. Maggie Hassan (D-N.H.), who called crypto use in terrorist financing a “growing concern.”

Over the last 48 hours, Bitcoin (BTC) price climbed from $31,000 to $34,800 before reversing course and dropping the majority of these gains. While this $3,800 shift to the downside might not seem significant, the 12% oscillation liquidated $660 million worth of futures contracts.

Bitcoin Falls as Miners Sell-Off with  Negative comments from Yellen - RichDadph Forex Trading Beginners Tutorial Philippines

While it’s unlikely that there will ever be a definitive answer behind the move, on Jan. 25, President Joe Biden voiced his willingness to lower the $1.9 trillion stimulus package. This might have reduced incentives for those buying BTC as an inflation protection or a hedge against U.S. dollar devaluation versus leading global currencies.

Bitcoin Falls as Miners Sell-Off with  Negative comments from Yellen - RichDadph Forex Trading Beginners Tutorial Philippines

Bitcoin has been testing the $30,800 support, but bulls have shown aggressive buying activity below that level.

Bitcoin Falls as Miners Sell-Off with  Negative comments from Yellen - RichDadph Forex Trading Beginners Tutorial Philippines

The cryptocurrency’s remarkable surge has also been fueled in part by a narrative that it offers a store of value akin to gold in times of unprecedented economic stimulus, which some investors fear will cause a spike in inflation.

However, skeptics worry that bitcoin is just another market bubble waiting to burst. The cryptocurrency is known for its volatility — it skyrocketed close to $20,000 in late 2017 before plunging the following year.