LONDON (UK) – Bitcoin registered a slump of 10% on Thursday, a 10-day low, and went on to retreat further from record highs. This came as traders cited concerns of tighter US regulations.
Considered to be the world’s most popular cryptocurrency, bitcoin was last down 7.5% at $32,779 after reaching as low as $31,977. After touching a record $42,000 on Jan. 8, it has fallen nearly a quarter.
This comes amid concerns that the cryptocurrency is one among several financial market bubbles. Traders said there were fears that the new administration of US President Joe Biden could try and regulate cryptocurrencies, which weighed on sentiment.
During Tuesday’s Senate hearing, Janet Yellen, who has been chosen by Biden to head the US Treasury, expressed fears of cryptocurrencies being used to fund illegal activities.
“I think many are used, at least in a transactions sense, mainly for illicit financing, and I think we really need to examine ways in which we can curtail their use and make sure that money laundering does not occur through these channels,” said the former chair of the US Federal Reserve.
Joseph Edwards of cryptocurrency broker Enigma Securities said these comments had a substantial impact.
“The action over the last 36 hours or so has largely been rippling outwards from the Janet Yellen comments on crypto,” he said.