After a volatile month, bitcoin has returned to a price position above $10,000. It had been advancing since April to meet five figures again, and peaked at $14,000 towards the end of June.
July was not so kind to the leading crypto, and it dropped below $10,000 on 16th July, at the same time as the Congressional hearings about Facebook’s Libra coin. Plus recent remarks from United States (U.S.) Secretary Treasury Steven Mnuchin who echoed president Donald Trump’s “not a fan of Bitcoin” comments could have also played a role.
However, as Cointelegraph remarks, the Facebook hearings have had an upside for bitcoin, because they have served to educate lawmakers about the key differences between Bitcoin and other so-called “cryptocurrencies.”
Blockstream chief strategy officer Samson Mow even suggested that Facebook should have simply offered a BTC service instead of foraying into a new cryptocurrency with Libra, saying, “Once Libra is compliant with every jurisdiction, it will just be a more complex PayPal governed by an association. Should’ve just used Bitcoin.”
And, U.S. representative Patrick McHenry said that he believes Bitcoin (BTC) can not be killed in an interview with CNBC’s “Squawk Box” on 17th July. McHenry was asked if politicians would allow cryptocurrencies to thrive, to which he replied, “I think there’s no capacity to kill Bitcoin. Even the Chinese, with their firewall and their extreme intervention in their society could not kill Bitcoin.” He went on to say that newer cryptocurrencies, backed by startups or corporations, are trying to replicate the success of Bitcoin’s decentralized, open-access network: “The essence of Bitcoin is what Libra and Facebook, and corporates are trying to mimic.”
His words seem to have had an effect on bitcoin’s price, although it is likely to be just one of a number of causes of the healthy price gain over the last two days.