By Jesse Cohen
Investing.com – prices recovered on Thursday, but still held below the $10,000 level as concerns that regulators will constrain the growth of cryptocurrencies continued to dominate sentiment.
Bitcoin last traded at $9,743.5 by 7:30AM ET (11:30 GMT), up around 4% on the day.
The rebound came after some heavy selling in the past week as Facebook’s bruising Congressional hearing on its Libra coin project, combined with negative remarks from both U.S. President Donald Trump and Treasury Secretary Steve Mnuchin, contributed to the decline.
Since July 10, the price of Bitcoin suffered a drop of as much as 31%, falling from a high of around $13,200 to a low of $9,090.
Several U.S. lawmakers on Wednesday called on Facebook (NASDAQ:) to halt development of its Libra coin until regulators had the opportunity to assess concerns around the social media company’s cryptocurrency.
“Like a toddler who has gotten his hands on a book of matches, Facebook has burned down the house over and over, and called every arson a learning experience,” Sen. Sherrod Brown told David Marcus, the social media giant’s blockchain boss.
Secretary Mnuchin echoed those sentiments, warning this week that Libra could be abused by terrorists, money launderers, and other criminals.
President Trump also voiced his concerns on Bitcoin and other cryptocurrencies earlier this month, saying on Twitter that he is “not a fan” and that they were “not money.”
Trump also criticized Libra in subsequent tweets, saying it “will have little standing or dependability” and suggesting U.S. regulators would subject the social media giant to regulation.
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— Reuters contributed to this report
Written By: Investing.com