Bitcoin leads sell off in cryptocurrencies amid US officials concerns

Bitcoin leads sell off in cryptocurrencies amid US officials concerns

The Bitcoin led a sharp sell-off in cryptocurrencies as it fell more than 10 percent to a four-week low, where the largest cryptocurrency by market capitalization dipped below the $10,000 mark.

On BitStamp cryptocurrency exchange, the Bitcoin plummeted to a low of $9077, while currently trading around $9433, while it fell from a peak of $11,042 on Tuesday.  

This data shows that the largest market cap of the digital currencies suffered a decline of more than 12 percent during the previous session.

Following President Donald Trump’s criticism to cryptocurrencies, eyes are currently carefully watching the Congress hearings regarding the newly announced Facebook Libra coin.

The Treasury Department has "very serious concerns that Libra could be misused by money launderers and terrorist financers," Treasury Secretary Steven Mnuchin told reporters at the White House on Monday.

Several U.S. officials are worried that the usage of Libra coin could violate the privacy of users' data and may increase the potential for criminals to use it for money laundering and fraud purposes.

Also, Senators of both parties have expressed their concerns regarding the Libra, citing risks to the banking system and gathering more data on the coin’s users.

G7 finance officials will put the risks posed by cryptocurrencies at the top of the agenda when they convene on Wednesday and Thursday the Paris suburb of Chantilly.  

Other digital currencies were not better off, as Ethereum fell by more than 10 percent to $201, Ripple tumbled more than 3 percent to $0.30. The Bitcoin cash suffered a drop of more than 4 percent to $291. 

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