The cryptocurrency market is trending lower today and bitcoin price declined below the $30,000 level today, following a brief rise earlier this week. The world’s largest and most popular cryptocurrency is down 2.9% and is trading at $29,276.07. Notably, the digital coin is down more than 35% so far this year (YTD), trading well below its all-time high of $69,000 in November last year. The total cryptocurrency trading volume over the past 24 hours is $68.2 billion, with Bitcoin holding 44.7% and Ethereum with 16.2% dominance.
Additionally, Ether is linked to the coin. Ethereum Blockchain And the second largest cryptocurrency, at $1,673.61 fell even more on 6.9% trading. dogecoin Today is trending below 4.1% and trading at $0.076157 and Shiba Inu has also fallen 3.4% to $0.000001024.
Other digital tokens saw a mixed performance with Cardano and Polkadot seeing huge declines. Stellar, Uniswap, XRP, Tron, Tether, Solana, Avalanche, Polygon, Chainlink, Terra Luna Classic also saw mixed performance in the last 24 hours.
Meanwhile, Chief Economic Adviser V Ananth Nageswaran said on Thursday that cryptocurrencies in the absence of a centralized regulatory authority are akin to the “Caribbean pirates’ world” and are yet to pass the test of a fiat currency.
He said the government is adopting a ‘high-wire balancing act’ to ensure that the gains in growth, inflation, stability of the rupee do not diminish in the last four years.
He added that the recent development in the Terra-Luna cryptocurrency, which saw a massive downturn last month, is a ‘very important cautionary tale’.
“I don’t get too excited about them (cryptocurrency) because sometimes we aren’t fully aware or understand what kind of forces we are freeing ourselves from. So I’m talking about some of these fintech-based disruptions. Will be somewhat safe in welcoming of decentralized finance (DeFi) and crypto etc.,” Nageswaran said.
He further added that unlike fiat money, cryptocurrencies cannot meet basic requirements such as store value, wide acceptability and unit of account.
Nageswaran said he agreed with RBI Deputy Governor T Rabi Shankar, who was saying that what now appears to be a case of ‘regulatory arbitration’ with respect to cryptocurrencies and decentralized finance rather than a matter of genuine financial innovation.
“The more they become decentralized and the absence of a watchdog or a centralized regulatory authority also means that the Caribbean is a world of pirates or a world of ‘take the winner all’ without actually being able to take it all from someone else. in the case of,” he noted.
The government is working on a consultation paper on cryptocurrencies and is taking inputs from various stakeholders and institutions, including the World Bank and the IMF.