After rising above the $50,000 mark, bitcoin price is trading below the $49,000 mark today with a decline from the crucial mark. The most popular virtual token briefly crossed the $50,000 level on 23 August. world’s largest cryptocurrency According to CoinDesk, the market cap fell by 2% to $48,610.
Ether, the coin tied to the Ethereum blockchain and the second largest crypto, was trading marginally lower at $3,755, down 0.2%. Meanwhile, the price of Dogecoin is down 4% to $0.29, while the price of Cardano is down 2% to $2.93. Other cryptocurrencies like Stellar, Uniswap, Litecoin have also declined in the last 24 hours.
Cryptocurrencies have surged this year amid a spurt in institutional interest and growth in areas such as decentralized finance (DFI) and non-fungible tokens (NFTs). Furthermore, according to a recent report by MacRumors, Twitter Inc. may be laying the groundwork to allow bitcoin tips in its Tip Jar feature. Meanwhile, El Salvador’s bitcoin law is effective September 7.
Whereas, the International Monetary Fund (IMF) has warned that the adoption of crypto assets such as bitcoin as a national currency could affect the country’s macroeconomic stability. The warning came before the Central American nation of El Salvador officially adopted the world’s most popular decentralized digital currency, bitcoin, as legal tender from 7 September.
In a blog titled ‘Crypto Asset as National Currency’? A step too far’, the IMF said, “some countries may be tempted by a shortcut: adopting crypto-assets as national currencies. Many are actually secure, easy to use and cheap to transact However, we believe that in most cases the risks and costs outweigh the potential benefits.”
Bitcoin broke a record nearly $65,000 in April. Billionaire Elon Musk’s helpful ideas and a straightforward listing of digital-currency platform Coinbase Global Inc fueled optimism.
(with inputs from agencies)
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.