In the two-hour Senate session, the lawmakers expressed their concern over Facebook gaining monopoly in the crypto-market if Libra is allowed outstrip the nationalized currencies. The Senators labeled Libra a delusional project and raised questions over Facebook’s failure to maintain the privacy of its 2.38 billion users.
The Libra Project lead David Marcus maintained his stance that Libra will propagate in a regulated manner and its readiness to work with regulatory bodies. The Senators grilled him on why Facebook is not pro-cleaning its existing mess and venturing into another business model.
At the end of the day grueling day at court, as soon as the news was out, Bitcoin price took a downslide and etched the over 25% drop in last week. Proving to be a week worse than the last, Bitcoin dropped $1,000 in less than 2 hours settling at a 24-hour drop of over 14%.
The overall crypto market looks very apprehensive as David Marcus will be at another hearing at the House Financial Services very soon.
It was less than a month ago that Bitcoin enthusiasts and the larger cryptocurrency market were lauding Libra as a catalyst to the ensuing bull-run. However, good times were never going to last long.
Over the past two weeks, Bitcoin price swing with the Libra news had brought the bull-run back. But with the concerning criticism Libra received from the Federal Reserve Chair, the Senate Banking Committees, the President and the European Banking Committees, the bear seems to be back as the price retreated from $13,000 mark to as low as $9,360.
