Crypto Markets Plummet As Libra Hearings Loom

Cryptocurrency markets took a tumble Monday (July 15), with some coins plunging by more than 30 percent following a weekend sell-off.

Bitcoin (BTC) slid after reaching new highs, while altcoins suffered a near-30 percent crash, Cryptovest reported. The price drop followed the typical pattern of a weekend rally followed by a bigger sell-off.

The catalyst was likely the upcoming July 16 and 17 Facebook hearings with the U.S. Senate Banking Committee and the House Financial Services Committee. Negative Tweets from President Donald Trump  were also blamed.

BTC dipped below $10,000 July 15, averaging about $10,197.34 but still holds its position as the leader in coin valuation with 65.7 percent of the market.

There are no clear indicators hinting if Bitcoin will continue crashing or enjoy another spike despite June’s high valuations, the report noted, saying the cryptocurrency could revisit the $9,000 range.

Ethereum (ETH) dropped 17 percent overnight and Litecoin (LTC) lost more than 12 percent. The biggest losers were Bitcoin Cash (BCH), losing net 30 percent and Bitcoin SV (BSV) seeing a 40 percent crash since July 8.

Total cryptocurrency market capitalization decreased by over $20 billion and is valued at around $294 billion and still falling. This is the first time the crypto market has fallen below $300 billion in almost two weeks, according to reports.

The sliding valuation comes on the heels of newer and stricter rule proposals by Congress, the U.S. Federal Reserve and the Internal Revenue Service. Federal Reserve Chairman Jerome Powell spoke to a congressional committee July 10 about the central banking organization’s concerns with Facebook’s Libra.

Meanwhile, Rep. Maxine Waters (D-CA), chairwoman of the House Financial Services Committee, called for a moratorium on Facebook’s plan for a digital currency.

David Marcus, the head of Facebook’s Libra project, has said the Swiss nonprofit Libra Association will operate the cryptocurrency and has already released its plans to address issues brought up by policymakers.