Bitcoin falls 10% as withdrawals from record highs accumulate

FILE PICTURE: Representations of Bitcoin virtual currency on US Dollar banknotes are given in this photo taken May 26, 2020. REUTERS / Dado Ruvic / Illustration

LONDON (Reuters) – Bitcoin fell 10% on Thursday to a 10-day minimum, further retreating from the highest highs, with traders citing fears about tighter US regulation.

The world’s most popular cryptocurrency Bitcoin was down 7.5% at $ 32,779 after falling as low as $ 31,977. It has lost nearly a quarter since touching its record-breaking record high of $ 42,000 on Jan. 8.

The downside comes amid growing concerns that bitcoin is one of several financial market price bubbles.

Fears that US President Joe Biden’s administration might seek to regulate cryptocurrencies have also weighed on sentiment, traders say.

During a hearing in the Senate on Tuesday, Janet Yellen, Biden’s choice to head the US Treasury, expressed concerns that cryptocurrencies could be used to fund illegal activities.

“I think that many are used, at least in a transactional sense, mainly for illegal financing, and I think we really need to explore ways in which we can reduce their use and make sure money laundering doesn’t happen through these channels, ”he said. former chairman of the United States Federal Reserve.

Joseph Edwards of cryptocurrency broker Enigma Securities said these comments had a significant impact.

“The action over the last 36 hours has been largely out of Janet Yellen’s comments on crypto,” he said, adding that it is still unclear exactly what, if anything, the Biden administration would do take it.

“We think it’s probably just a momentum moment rather than a sea change, though.”

Reporting by Julien Ponthus and Tom Wilson; Editing by David Goodman