In May of this year, the head of the Federal Reserve System Jerome Powell met with the CEO of the largest US cryptocurrency exchange Coinbase. Shortly thereafter, the value of bitcoin began to decline steadily.
The loud collapse of the main digital coin since the end of 2017 was also associated with the policy of the Central Bank of the United States by many analysts of the crypto exchange.
In mid-May 2021, BTC lost its correlation with the American stock exchange. So, if since May 13, the S&P 500 stock index has increased by 7%, then the bitcoin price has dipped by 50%.
At the same time, on May 11, the head of the Federal Reserve System Jerome Powell met with the CEO of the Coinbase cryptocurrency exchange Brian Armstrong. This became known only from the published meeting calendar of Jerome Powell for May. It is important to note that the head of the Fed communicated with Armstrong in person, and not remotely, as most of his meetings take place. In addition, former White House speaker Paul Ryan was invited to the meeting. The purpose and content of the May talk remain unknown to this day.
Later on his Twitter account, Brian Armstrong talked about his visit to Washington, but did not mention the conversation with the head of the Fed. According to a post on the social network, during the week he spoke with "members of Congress and the heads of various federal departments."
But Jerome Powell was not going to hide his meetings at all and, according to the schedule for the last month, appointed another one with Christopher Giancarlo - the head of the private initiative to develop the digital dollar - on May 12.
On the same day, May 12, bitcoin sharply rushed down from the level of $58,000 and a week later fell to $30,000. Market participants then associated the fall in BTC with theTwitter post published on May 12 by Elon Musk. It reported that Tesla would stop accepting the main digital coin.
However, today experts of the virtual currency market are analyzing the facts more than a month ago over and over again, expressing multiple assumptions about the conversation between the head of the Fed and the CEO of the Coinbase exchange. What in Jerome Powell's speech could have caused Bitcoin to plummet to the level of December 2017?
Coinbase cryptocurrency exchange was founded in 2012. Currently, it provides services to more than 55 million users from 100 countries of the world.
The permanent rise in digital currencies could pose a serious threat to Coinbase. The danger for the crypto exchange was that speculators holding virtual currencies for future growth do not make transactions, depriving Coinbase of trading volumes and fees.