FX.co ★ Bitcoin drops as Janet Yellen comments on crypto

Today, major changes in financial and foreign exchange markets are driven by political events in the US. It is hardly surprising since market participants all over the world are closely monitoring the transition of power in America. The crypto market is no exception here. Analysts are sure that a recent pullback in the price of bitcoin is connected with Joe Biden’s presidency and his new team. The main factors to weigh on BTC and other digital currencies are the proposed stimulus package for the US economy and plans of the new US President to focus on green energy. Investors should pay close attention to Joe Biden's actions and statements in his first month in office. This is the moment when the new US administration is outlining its future plan. With this in mind, traders can adjust their strategy for cryptocurrency trading. Thus, Janet Yellen, Biden’s nominee for Treasury Secretary, has recently suggested that lawmakers curtail the use of cryptocurrencies such as bitcoin. Yellen said crypto transactions were used “mainly for illicit financing.”