Bitcoin broke below another critical level Tuesday, Feb. 6, as prices on Coindesk reached as low as $5,947 in early trading. The cryptocurrency hasn't fallen below the $6,000 threshold since early November.
After the dip, prices of most crypto assets were staging a comeback by late Tuesday afternoon. Bitcoin traded higher as much as 5.4% to near $7,300 in late-afternoon action. Here are the headlines you need as crypto wobbles Tuesday.
Senate hearing takes focus
SEC chairman Jay Clayton and CFTC head J. Christopher Giancarlo appeared in front of the Senate Committee on Banking, Housing and Urban Affairs Tuesday to discuss the regulation of cryptocurrencies in the U.S. The two leaders said immediate further regulation of digital assets might not be needed just yet, but Clayton suggested they might return to Senate "with friends from the U.S. Treasury and the Fed," according to Coindesk. Both said the international aspect of the crypto trade makes it tough to govern domestically, but recent developments in the futures market offer some groundwork.
Dr. Doom takes aim
Former Clinton administration economist Nouriel Roubini, often referred to as Dr. Doom, took to Twitter to criticize cryptocurrencies ahead of the Senate hearing Tuesday. Roubini has long been an opponent of digital assets, this time going as far as calling cryptocurrency investors "criminal Cyber-Terrorists" who had sent him death threats following earlier callouts.
Cryptocrazies are also criminal Cyber-Terrorists: in 2015 when I criticized Bitcoin on top of death threats they did a Denial Of Service Attack against my 50 folks consulting biz Web site & shut it down for a day. I expect to be hacked again as I have been warned. Terrorists!— Nouriel Roubini (@Nouriel) February 6, 2018
Warning from SEC Chair Clayton at Senate Hearing: ICOs will increasingly be chased by SEC as securities. SEC's job is to stop securities fraud: 10% of all ICO funds raised have been shamelessly stolen & most non-top cryptos are regularly "pumped" & then dumped a few days later.— Nouriel Roubini (@Nouriel) February 6, 2018
Buffett's BNSF jumps in
BNSF Railway, a railroad network owned by Warren Buffett's Berkshire Hathaway (BRK.A - Get Report) (BRK.B - Get Report) , announced it has joined the Blockchain in Transport Alliance (BITA). The Alliance is a group of shipping, rail and logistics firms that have come together to share technological advancements and useful information in a bid to further the capabilities of blockchain technology in transport. Other notable members include China's JD.com (JD - Get Report) , FedEx Corp. (FDX - Get Report) and United Parcel Service Inc. (UPS - Get Report) .
Taiwan preps for the worst
Shih Jun-ji, VP of Taiwan's executive branch, reportedly asked the government to develop policies aimed at handling the potential economic impact on the country of a cryptocurrency collapse. According to a government report, Shih spoke at a symposium Feb. 2, urging proactive policymaking from the Taiwanese government as bitcoin and other cryptocurrencies become increasingly influential on the country's financial markets. He pointed out that when bitcoin traded at $10,000, its market cap equaled about the total assets of all the banks in Taiwan at $170 billion.
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