The Lead: Bitcoin's Weekend in Vegas
Cryptocurrency had a Bloody Sunday after a $10 billion drop in value for both Bitcoin and alt coins.
The crash was partly attributed to a Tweet saying that the U.S. Treasury was planning to charge several financial institutions for money laundering using cryptocurrency. But that news didn't pass the smell test and a number of legal experts weighed in calling it fake news. They said the Treasury doesn't handle crimes like that. The Department of Justice does.
Whether the news was fake or not, it moved the market.
There was also a power outage in Xinjiang where data website CoinMarketCap operates. This site powers a lot of bitcoin mining and this scared investors. This was real news.
“The power outage does expose a fundamental weakness; that although the Bitcoin network is decentralized the mining of it is not,” said Luke Sully, CEO at digital asset treasury specialist Ledgermatic.
Investors have been speculating if cryptocurrency is a bubble and clearly many of them are jumpy but many investors bought on this dip and the currency climbed its way back on Sunday into today.
As of this morning’s writing, BTC is back over $60,000 lifting the entire cryptocurrency market in early-hours trading. Ethereum is up too. If you bought the dips you made some great money.