Bitcoin (BTC) Wipes Out Weekly Gains With 9% Fall As BoJ Governor Casts Doubt On the Crypto

After showing some good momentum northwards over the last week, Bitcoin (BTC) is down today by 9% wiping out all its weekly gains. Over the last week, central banking authorities have been attacking Bitcoin for its recent volatility and the latest to join is Bank of Japan Governor Haruhiko Kuroda.

During an interview with Bloomberg, Kuroda noted that Bitcoin is “barely used as a means of settlement. Most of the trading is speculative and volatility is extraordinarily high,” he added.

Bitcoin slumps to wipe out most of this week’s advance after critical comments from the head of Japan's central bank https://t.co/ZEHjmj0rf9 via @crypto

— Bloomberg Crypto (@crypto) May 28, 2021

Over the last two weeks, Bitcoin has exhibited massive volatility. First following Tesla’s reversal in decision with Bitcoin payment and later followed by China’s crackdown. Let’s take a look at Bitcoin’s weekly chart below.

Last Friday, China announced its decision to ban crypto mining and trading activities in the country. The BTC price came crashing down on Sunday, May 23, slipping under $32,000 levels. Although Bitcoin resumed the northward trajectory, it has come under severe pressure once again almost wiping out the gains since last Saturday.

Central Banking Authorities Put Pressure on Bitcoin (BTC)

The comments from the governor of the Bank of Japan came following similar comments from his peers worldwide. Last month, the Fed chairman also referred to cryptocurrencies as the vehicle of speculation. European Central Bank Vice President Luis de Guindos said that cryptocurrencies are not real investments.

At the same time, the Bank of England Governor Andrew Bailey strongly believes that cryptocurrencies have no intrinsic value. He added that people should be willing to lose their money if they are investing in it. Lars Rohde, the governor of Denmark’s central bank, added that Bitcoin and other digital currencies are a little more than a speculative fad that central banks can ignore.

Well, it is not the first time that Bitcoin has been under attack from central banking institutions. However, the sharp pullback and ~50% correction in the BTC price from its all-time high has made investors a bit fearful.