Yesterday, US Treasury Secretary Janet Yellen expressed unfavorable opinions on bitcoin and the price of bitcoin fell.
Is there a direct correlation between the two events?
First of all, it should be mentioned that the price of bitcoin the Sunday it had reached levels difficult to sustain in the short term. It had increased by 48% in the last two weeks alone, and up to 100% in just four weeks.
Such large and sudden rises are very difficult to sustain in the short term, especially if they occur in previously unexplored territory.
Therefore, the possibility of a correction was more than likely, and Yellen's words cannot be considered the cause of this correction, but at best the triggering event.
In this regard, it is worth comparing the moment.
First of all, Yellen's words from yesterday follow other, somewhat similar statements of hers, dating back to February 20, that is, the day before the price of BTC soared to new all-time highs. This seems to confirm that yesterday's intervention by the new US Treasury secretary is not the cause, but at most the trigger for the fall.
Yesterday, Janet Yellen spoke at the New York Times DealBook conference, hosted by CNBC's Andrew Ross Sorkin, and said He did not believe that bitcoin was widely used as a transaction mechanism, but that it was often used for illicit financing. He also called it "an extremely inefficient way to transact," as the amount of energy consumed in processing transactions is "staggering."
These statements were made yesterday between 3:00 p.m. and 4:00 p.m. CET, roughly half an hour after the bitcoin price fell from $ 52,000 to $ 48,000 in a matter of minutes, but in the previous five hours, it had already dropped from $ 56,000 to $ 52,000.
Therefore, yesterday's sudden drop cannot be attributed to Yellen's remarks.
However, shortly after touching $ 48,000, the price of bitcoin rose again yesterday, just as Yellen's statements were released, back to $ 54,000 over the course of the rest of the day.
Overnight, following the Asian markets, the price fell again, returning today to around $ 48,000.
These dynamics are likely only superficially influenced by news in the crypto markets, not least because Yellen, despite being the former Fed governor and current Secretary of the Treasury, now plays a distinctly political role in the new Biden administration. , so his words should no longer be seen as those of a disinterested technician seeking consensus, but as political propaganda with the main objective of acquiring it.