Yesterday, Minerd predicted that the Bitcoin price could decline to $20,000. In an interview with CNBC, he said, “We probably have put in the top for bitcoin for the next year or so. We are likely to see a full retracement back to the $20,000 level.”
Another reason could be the statement of Former Federal Reserve Chairperson Janet Yellen, who was nominated by President Joe Biden to serve as Treasury Secretary.
During her confirmation hearing on Tuesday, a day before Biden’s inauguration, Yellen recommended that lawmakers “curtail” the use of cryptocurrencies like Bitcoin due to concerns that they are “mainly’ used for illegal transactions.
Yellen said, “Cryptocurrencies are a particular concern. I think many are used – at least in a transaction sense – mainly for illicit financing.”
“I think we really need to examine ways in which we can curtail their use and make sure that money laundering doesn’t occur through those channels,” she added.
Yellen’s comment followed a statement by European Central Bank (ECB) President Christine Lagarde who said last week that Bitcoin should be regulated globally. She cited the reason that the cryptocurrency is being used in a “totally reprehensible money laundering activity.”
