Bitcoin has plummeted below the $50K mark once more
Coins like Bitcoin have fallen over 8% in the previous two days, breaking $50,000 and trading below critical psychological thresholds.
The fear of central banks reducing support has pushed investors away from riskier global markets. A succession of incidents has also pushed the premium digital token offline for a month. A recent discussion included US Treasury Secretary Janet Yellen and Tesla CEO Elon Musk.
Yellen cautioned against the use of Bitcoin in illegal activities on Monday, calling it “extremely inefficient”. She also warned about Bitcoin’s environmental impact.
Musk claimed over the weekend that Bitcoin’s price is too high. Tesla just announced a $1.5 billion purchase of Bitcoin. Tesla’s stock has been in the doldrums recently.
The amount of power required to create new crypto currencies has been criticised. To produce Bitcoins, miners use high-powered equipment and supercomputers to solve difficult algorithms. The price of Bitcoin has fallen by up to 15% in the previous week, as has Ethereum, Solana, Poloniex, XRP, Cardano, Avalanche, and Polygon.