The price of bitcoin has rocketed higher so far this year, but volatility remains a feature of the digital currency, which tumbled more than 10% over the weekend before recovering slightly on Monday morning.
Just last week bitcoin was trading in the $13,000 range, but concerns about growing political opposition to Facebook's planned new cryptocurrency, Libra, brought the price below $10,000 over the weekend. Federal Reserve chair Jerome Powell and President Trump both made critical comments about Libra last week. The introduction of Libra has led to optimism about the wider acceptance of cryptocurrencies.
On Monday morning, bitcoin was trading at $10,530 per coin.
On Tuesday, July 16, members of the Senate Banking Committee will be questioning Facebook executives about Libra and on Wednesday, members of the House Financial Services Committee will do the same.
That level of scrutiny for digital currencies has bitcoin testing its 50-day moving average of $9,900 for the first time since February 18. This has been a pattern for the cryptocurrency.
Bitcoin dropped to $6,070 from $6,820 the week before a congressional hearing in July last year, according to CoinDesk. In February, bitcoin's price fell by 50% to $6,000 in the 10 days before a congressional hearing on February 6, 2018.
Facebook revealed plans for Libra in June with a directive to form a governing council to regulate the currency while using the token to form a financial ecosystem that operates independent of countries' governments.
Facebook is a key holding in Jim Cramer's Action Alerts PLUS charitable trust.