Bitcoin Drops 16% after Comments from U.S. Treasury Secretary

Bitcoin Drops 16% after Comments from U.S. Treasury Secretary

Major cryptocurrencies, including Bitcoin, fell on Tuesday after a strong warning from U.S. Treasury Secretary Janet Yellen.

This isn’t the first time Yellen has criticized the cryptocurrency, saying ‘it is often used for illegal transactions’.

“It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering,” Yellen said in an interview with the New York Times.

Yellen also said that cryptocurrencies are likely to survive and that a “digital dollar” could serve better for many Americans who do not have access to mining and payment system.

Since taking over the Treasury Department, she has made it clear that her department will take a hard look at Bitcoin, with the possibility of regulation.

Bitcoin price fell 16% to $45,658, a level not seen in more than a week. Losses were not limited to Bitcoin, with ethereum dropping 11.28% to $1,550.78, and XRP -20.24% to $0.459188.

Bitcoin recently crossed $1 trillion in market value, as it attracted more investors, namely Tesla’s CEO Elon Musk, who promised $1.5 billion Investment in bitcoin.

SeeNews analysts expect the digital currency to regain its losses, saying ‘it is a golden opportunity to buy the cryptocurrency, as big investors involved are expected to hit back’.