U.S. Federal Reserve Chairman Jerome Powell said Wednesday that Facebook's plan to build a digital currency called Libra couldn't go forward until serious concerns were addressed, comments that pressured the project and dented the price of the original cryptocurrency bitcoin.
The strong comments from the most powerful U.S. financial regulator underscored the growing regulatory hurdles facing the proposed cryptocurrency, which has drawn scrutiny from policymakers globally.
"Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability," Powell said during his semiannual testimony on monetary policy before the House Financial Services Committee. "I don't think the project can go forward" without addressing those concerns, he added later.
Powell said any regulatory review of the project should be "patient and careful." He noted that existing rules do not fit digital currencies.
The cryptocurrency markets fell sharply on July 10 after bitcoin (BTC) suffered another $1000 sell-off, denying a bullish breakout that looked primed to test its recent 2019 highs.
BTCUSD shed $1,526 in the past 24 hours from high of $13,161.38 broke the $12,000 psychological support before another wave of sellers dragged it to a peak low of $11,635.15. Prices had initially attempted to rally above $13,200 but were stopped short as a quick reversal to momentum brought prices reeling back below $12,000.
Bitcoin price form a "double top" on the daily chart from this sell-off. First support come in at $11,225.08 the 20-EMA line. Double top neck line is at $10,580.
The short-term remains volatile, so BTC could experience a bounce on today’s momentum, but that will need to be accompanied by strong levels in growing (bullish) volume in order to end the recent sell-off still being felt.
Major names such as ether (ETH), litecoin (LTC), XRP (XRP) and EOS (EOS) also began to fall in value at around the same time as BTC, losing between 6-11 percent in just under 4-hours.
Further, the total market capitalization of all cryptocurrencies combined suffered a $27.1 billion loss over 24-hours, marking one of the largest single-day losses in market value since June 28, 2019.