Bitcoin, technical flaws, US regulatory reinforcement concerns plunged 11%… Bubble goes out

If bitcoin, a bubble controversy, fell 11.3% in the U.S. market on the 21st (local time), it fell to the lowest level in three weeks.

U.S. economic media, Bloomberg, reported that the fear that there may be a technical flaw in Bitcoin’s blockchain technology lowered the price. On the 20th, Bitmax Research evaluated that there is a possibility that’duplicate payments’ will occur when users make payments using bitcoin. However, it is reported that there have been no actual cases of duplicate transactions confirmed in relation to the report by Bitmax Research.

The bitcoin price dropped to less than $31,000 in the US market on this day. According to Bithumb, a domestic cryptocurrency exchange, as of 8:30 am on the 22nd (Korean time), it is trading at around 3472 million won.

Along with this, the announcement of the Biden administration’s first finance minister-nominee Janet Yellen, who launched the day before, that the use of bitcoin should be regulated, also adversely affected investor sentiment, Market Insider analyzed.

Earlier, at a hearing on approval of the Senate Financial Services Commission on the 19th, the nominee of Finance Minister Yellen expressed concern that cryptocurrency could be abused for terrorists’ money laundering. “We need to consider ways to reduce the use of illegal financing and prevent money laundering,” he explained.

Nominee Yellen often expressed pessimism about cryptocurrency. In 2017, when he was the chairman of the Federal Reserve Board, it was argued that Bitcoin was a very speculative asset and was not a reliable means of storing value.

For this reason, local media in the US are evaluating that the Biden government can regulate crypto assets including bitcoin.

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