Bitcoin plunges by $3,000, Trump admn rumored tracking crypto wallets

Bitcoin plunges by $3,000 in 24 hours. Trump administration is rumoured to be tracking cryptocurrency wallets.

The price of Bitcoin was weak after surpassing US$19,000. It rose to a three-year high of US$19,521 on Wednesday. After a sharp correction, it fell sharply by US$3,000 within 24 hours.

According to data from the hypothetical currency website CoinDesk, the price of Bitcoin once rose to a high of 19,500 US dollars on the afternoon of the 25th of this month and then began to fall sharply. It once fell to the level of 16,500 US dollars, with a daily drop of about 13%. The latest drop is about 9%.

Bitcoin has risen by more than 150% this year. The market generally believes that it is related to the stimulus of the monetary and fiscal policies of various countries caused by the COVID-19 pandemic. However, US President Trump recently criticized Bitcoin, Facebook’s planned digital currency Libra and other cryptocurrencies, saying that if a cryptocurrency company wants to “become a bank,” it must apply for a bank license and accept the U.S. and global supervision.

Concept with bitcoins and falling candle graph.

US President Trump stated that if a cryptocurrency company wants to “become a bank”, it must apply for a bank license. Rumour has it that the Trump administration wants to track cryptocurrency wallets. According to foreign news reports, the administration of US President Trump suspects that the owner of the cryptocurrency wallet and everyone involved in the transaction will be executed by the Secretary of the Treasury Steven Mnuchin. If implemented, it will suppress the spirit of cryptocurrency. The core principle-private cryptocurrency is free from harassment and stalking.

Specifically, this proposed regulation will require financial institutions like Coinbase to verify the owner of a cryptocurrency wallet and collect their identity information before they can send digital currency to the cryptocurrency wallet. Besides, these data will also log all the above information.

bitcoin coin on dollar bill with buttons

Besides, regarding Bitcoin’s plunge, Vijay Ayyar, head of business development at Singapore’s cryptocurrency exchange Luno, said, “Bitcoin is already seriously overbought and needs to be corrected. I don’t think it’s unusual for a sharp drop to occur.” Brokerage firm OSL based in Hong Kong Global trading director Ryan Rabaglia said that concerns about the possible tightening of cryptocurrency rules in the United States and profit-taking could explain the price drop of most digital assets.

Bitcoin has exhibited this volatility for 10 years since its inception. At the end of 2019, the cryptocurrency plunged more than 73% from its all-time high. This and its high transaction costs have largely prevented it from being used as a daily payment method. On the contrary, it is regarded by some supporters as a store of value or “digital gold.”