“I think that there are criminal investigations that have taken place…I’m sure will continue to take place that demonstrates it very clearly,” said Lagarde.
The ECB President also pointed out that Bitcoin is not a currency but a “highly speculative asset.” She cited the very obvious reason that Bitcoin’s price is very volatile.
Meanwhile, Chris Thomas, head of digital assets at Geneva-based Swissquote bank suggested that the unwinding of leverage in Asia triggered the latest Bitcoin sell-offs.
“We saw some selling from institutions, but not significant. The trigger was Asian leveraged positions late in Asian hours. They move the market quite a lot because of the leverage,” explained Thomas to Coindesk.
On the other hand, Jean-Marc Bonnefous, a partner at investment firm Tellurian Capital, said, ”The next support level down is the 61.8% Fibonacci retracement at $26,700. That is if the new investors’ allocations do not come in as widely expected to buy the much-awaited dip.”
“As the number of traditional investors and traders entering the Bitcoin market increased in recent months, the price movement has become more technical-driven. Before it was mainly affected by Bitcoin’s supply and demand,” he added.
