Bitcoin suffers worst weekly drop in months

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Bitcoin reached its biggest weekly devaluation since September 2020 at the end of last Friday (22), when the cryptocurrency had recorded a 12% loss. In the last seven days, the fall was 11%, according to Reuters.

The main reason for the sharp devaluation would be an alleged error in the digital currency blockchain, making it possible to use part of a bitcoin twice, as reported on Twitter by BitMEX Research, which specializes in monitoring cryptocurrency trades.

This double spending on bitcoin would have occurred in block 666,833, mined last Wednesday (20). The negotiation would involve a low amount of 0.00062063 BTC, equivalent to approximately US $ 21 (or R $ 114 in direct conversion, at the quotation of the day), according to the monitoring team. The information is in the tweet below.

The duplicate transaction was never confirmed. But for IG Markets analyst Kyle Rodda, the simple report of the possibility of error was enough to raise concerns about the security of the platform among users, triggering the sale of bitcoins. “The herd probably looked at it and thought it looked scary and shocking and decided that now is the time to sell,” he commented.

Possibility of new regulatory rules

The choice of economist and professor Janet Yellen as United States Treasury Secretary under Joe Biden’s government has also been pointed out by experts as one of the causes of the worst drop in the value of bitcoin in recent months.

Last Tuesday (19), Yellen stated that many digital currencies are used for “illicit financing”, as they do not require the identification of users, facilitating the actions of terrorist groups and other types of criminals.

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In light of this, she suggested that it was necessary to create ways to restrict the use of electronic money, by drafting new rules for the regulation of cryptocurrency, to ensure that money laundering does not occur in digital transactions.

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