Over the last couple of days, bitcoin’s decline looks like it has to stop plummeting for the time being making a slight bounce back on Thursday.
Following an unpleasant news from Google and the International Monetary Fund with claims of banning cryptocurrencies, bitcoin prices started to drop on Wednesday.
Bitcoin values went below $8,000 with further declines reaching the $7,000 level on Thursday. Bitcoin prices hit a low of $7,676, its most significant decline over the past five weeks but fortunately, there was a recovery in bitcoin pricing at $8,300.
However, the inconsistency was not only as a result of Google and the IMF. There was also a hearing on Wednesday at the House Capital Markets, Securities and Investments Subcommittee, with some of the members expressing their dislike towards cryptocurrencies.
Reports by the committee’s chairman, Michigan’s Bill Huizenga stated that “this Congress is not going to sit by idly with a lack of protection for investors.”
Brad Sherman, a Californian Representative referred to cryptocurrencies a fraud, going on to state that “they allow a few dozen men in my district to sit in their pajamas all day and tell their wives they’re going to be millionaires.”
According to Sherman, the initial coin offerings (which is a cryptocurrency-related fundraising tool which frauds people to pay real money are nothing much) is used “to lie to the public and convey the image that is like an IPO.”
Presently, the Securities and Exchange Commission is going through a process to track all fraud ICOs. This has been a discouraging event for the cryptocurrency market in the past.