After Jerome Powell, US Federal Reserve Chairman warned the people against the possible risks of cryptocurrency, Bitcoin’s price fell by 6%. It was recorded at almost $53,000 over the last two days.
According to Powell, the federation chooses to refer to crypto tokens as crypto assets because of the assets’ unpredictability. Cryptocurrency’s instability doesn’t make it the best store of value, which is the differentiating feature of fiat currency.
The Associated Press reported that according to Powell crypto is more of an asset for speculation. He added that it was not even being used as a mode of payment and was at best an alternative to gold.
In the last two days, the price of the world’s largest cryptocurrency, Bitcoin saw low and high points. It fluctuated between a low of $53,285.84 and a high of $58,235.91. These figures were reported by CoinGecko.
The digital token also went down by 5.5% at one point when it traded at $54,716.14.
The second-largest crypto token after Bitcoin is Ethereum and that is also said to have seen a fall in its price. It traded at $1,694.92 which reflected a fall of 6% in its price. Now, with the most recent fall, the crypto token has fallen 17% further away from its all-time high of $2,042.93.
Chief Executive Officer of Unocoin, Sathvik Vishwanath stated that the closing and opening prices of many tokens remained roughly equal. There was a price swing in-between both sides. The unexpected price decline earlier last week was robust enough to hint that it was the inflated prices that had fallen down. However, the same was recovered over the following two days. Vishwanath clarified that this meant that at the present price range no correction could be made. Adding further that it could be corrected after the crypto market hit greater price ranges.
In 2008 the financial industry crashed and perhaps purposely a digital cash was created known as the Bitcoin. This crypto-asset has enabled people to institute trust and execute transactions without the involvement of a third party. As a result of the simple act, a spark was ignited in the entire world and people are either terrified or excited about it. Bitcoin and as a matter of fact, any other digital token are assets that go up and down based on their popularity. More essentially, Bitcoin is a digital currency and not a fiat currency controlled by the nation’s stage.
Ever since 2008 cryptocurrency, especially Bitcoin has gained a lot of popularity over the last couple of years. Popular investors, celebrities, multi-nationals corporations, and the financial industry have shown their acceptance of the digital asset. This has caused the crypto industry to become somewhat conventional, making the digital currency a more viable option. While the digital tokens like Bitcoin, Ether etc. see a downfall on some days, at others they manage to reach an all-time high.