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Bitcoin (BTC) price drops below $ 50,000 as Janet Yellen warns

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Bitcoin Prices fell further on Tuesday after US Treasury Secretary Janet Yellen warned about cryptocurrencies.

According to Coin Metrics data, the world’s most valuable digital coin has plummeted 16% in the last 24 hours, below $ 50,000 and to $ 45,389 at 4:10 EST.

Small digital tokens like Ether and XRP have also fallen. ether Price fell 15% to $ 1,497 XRP It fell 21% and traded for about 45 cents.

On Monday, Yellen called BitcoinA very inefficient way to execute a transaction“And she warned about illegal use. She also warned about the environmental impact of Bitcoin. The token surge Reminded critics of the high level of electricity needed to produce new coins..

Bitcoin is not controlled by central authorities. So-called miners run high-powered machines that compete to solve complex math puzzles to perform transactions.According to Bitcoin’s network consumes more power than Pakistan Online tools From a researcher at the University of Cambridge.

Yellen also warned retail investors on Monday about the risks of investing in Bitcoin.

“I think this is a very speculative asset and people should be aware that it can be very volatile and worried about the potential losses investors may incur. “We are,” the former Federal Preparatory Board chairman told CNBC’s Andrew Ross Sorkin in the New York Times DealBook.

Bitcoin has risen by more than 60% since the beginning of this year, and price fluctuations of more than 10% are not uncommon in the crypto market.Bitcoin Once it rose to almost $ 20,000 The following year, in 2017, before reducing 80% of its value.

Digital coin Finally achieved a market value of $ 1 trillion for the first time It’s currently below $ 900 billion, according to CoinDesk.Backed by news from Wall Street banks and big companies such as: Tesla And master Card Global warming to cryptocurrencies.

Elon MuskTesla CEO said on weekend that Bitcoin and rival token ether prices will be “Seems expensive“It was after Tesla announced earlier this month that it had bought $ 1.5 billion worth of Bitcoin. The biggest drop since September 23, 2020 on Monday.

Bitcoin is also attracting attention from mainstream investors, with the perception that it is a store of value similar to gold. Bullish investors argue that cryptocurrencies can act as a hedge against rising inflation.

But skeptics say Bitcoin has no intrinsic value, One of the biggest market bubbles in history.. Last week’s JP Morgan analyst said Bitcoin was “Economic side show“And that crypto asset is ranked as the” poorest hedge “against a significant decline in stocks.

Bitcoin (BTC) price drops below $ 50,000 as Janet Yellen warns

Source link Bitcoin (BTC) price drops below $ 50,000 as Janet Yellen warns

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