Bitcoin gave up recent gains as two reports flagging trouble ahead for cryptocurrencies added to ongoing concern over Ukraine Bitcoin traded on the b
Bitcoin gave up recent gains as two reports flagging trouble ahead for cryptocurrencies added to ongoing concern over Ukraine
Bitcoin traded on the back foot in Thursday morning’s early deals as bargain searching dip-grabbers failed to keep the momentum from the last couple of days on news from the Financial Stability Board (FSB) that crypto may soon pose a threat to global financial stability.
Much like several of the heavy sell-off days in January, most of the leading digital currencies were trading in negative territory, with Bitcoin slipping 0.5% to US$43,790.
Meanwhile, its closest rival in terms of market value, Ethereum, fell 1.4% to US$3,091.
Both digital tokens are roughly 35% below all-time highs seen in November, as rising inflation, global interest rate hikes and the escalating tensions between Russia and the US left previously bullish speculators seeking safer havens.
Although it must be noted, a month ago they were both at six-month lows and half the value of their all-time highs, so a slight recovery has unfolded in February as investors capitalised on cheap prices to ‘buy the dip’.
“Crypto-asset markets are fast evolving and could reach a point where they represent a threat to global financial stability due to their scale, structural vulnerabilities, and increasing interconnectedness with the traditional financial system,” the FSB report commented on Wednesday.
Meanwhile, speculation surrounding Colorado that it may begin accepting Bitcoin as payment for taxes has also been circulating.
“Historically speaking, Colorado has been a relatively crypto-friendly state and was among the first government bodies to adopt blockchain technology into its systems.
“To turn this idea into a reality, Colorado will likely have to partner with a crypto company so that it is able to smoothly accept cryptocurrencies as payment from its citizens [for taxes],” Naeem Aslam, Ava Trade chief market analyst, said.
But considering how volatile the market for digital currencies can be, the losses this morning are relatively minor, with Solana slipping 3.1% being the only reduction greater than 2% in the top 30 cryptos.
Further down the pecking order, Gala, Axie Infinity, and Theta Network lost 4.4%, 4.1%, and 3,8% in value respectively.
Overall, 70 of the leading 100 cryptos were trading in the red on Thursday.
So, it wasn’t all doom and gloom for investors in the world of digital currencies.
The most notable to buck the trend were Shiba Inu and Cosmos which leaped 5.2% and 6.1% respectively, while on much less of a rampage, Near Protocol and Fantom advanced 2.5% and 2.0%.
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