Business & Investment

Bitcoin records the worst week since March last year

Bitcoin has recorded the worst week since March last year as cryptocurrencies fell 14% amid new doubts about its legitimacy.

Bitcoin recorded the worst week since March last year in new doubts about its legitimacy.

Cryptocurrency prices have fallen 14% this week and could fall further.

Bitcoin fell below $ 30,000 at some point yesterday and then recovered to $ 32,500. It started the week at $ 37,500.

A real-life check of Bitcoin takes place after a surge to nearly $ 42,000 on Christmas and New Year as investors pile up in the asset class.

Many commentators dismissed the rise as speculative enthusiasts because digital coins rose for no apparent reason.

Bitcoin began to fall on Tuesday. Former Federal Reserve Chairman Janet Yellen (now Treasury Secretary under President Joe Biden) said he wanted to minimize the use of all cryptocurrencies, “mainly used for illegal financing. It was done. ” .. The comment was a clear statement that the Biden administration would be hostile to Bitcoin and tighten regulations.

Two weeks ago, ECB Governor Christine Lagarde said Bitcoin was used for “fully condemned money laundering activities.”

And last year, money manager Warren Buffett said, “Bitcoin has been used to illegally transfer significant amounts of money.” He also said investors should “go to short suitcases” because criminals no longer need to carry cash.

Concerns arise from the fact that Bitcoin has no physical form and is not controlled by central authorities. This means that they are largely unregulated and untraceable.

Joseph Edwards of Enigma Securities, a cryptocurrency broker, said Yellen’s comments had a big impact.

But others believe Bitcoin stays here and the recent price cuts are momentary.

Analysts argue that Bitcoin can protect against future inflation as the world’s central banks have launched massive stimulus measures since the pandemic broke out early last year.

Bitcoin has also become a payment method on the high streets where Starbucks and Whole Foods accept coins in an app called Bakkt. And last week, asset manager BlackRock entered the crypto world by saying that some of the assets the two funds were allowed to buy were cash-settled Bitcoin futures.

Advertising

Bitcoin records the worst week since March last year

https://www.dailymail.co.uk/money/markets/article-9177321/Bitcoin-records-worst-week-March-year.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Bitcoin records the worst week since March last year

Back to top button