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Today’s crypto markets are down, and some of the market leaders have experienced significant decline in value.
In the last 24 hours, crypto markets lost 4.6 percent of their market value as the prices of prominent digital currencies like as Bitcoin, XRP, and Dfinity fell by more than 5%.
Bitcoin, the market leader, is down 6.1 percent and is presently trading at $35,723 at the time of writing. That is about half the price of its all-time high of $64.8k, which was reached in the golden days of mid-April this year.
Bitcoin got off to an optimistic start this week after briefly reclaiming its $40,000 price tag. On Monday, it hit $41,117 after Tesla CEO Elon Musk tweeted that his company will reconsider accepting the currency once Bitcoin miners can confirm “reasonable (~50%) clean energy usage with a positive future trend.”
However, the green CEO was not the first one to raise concerns about Bitcoin’s problematic energy consumption this week. On Thursday, the Bank of England’s director of fintech, Tom Mutton, stated that the UK’s Central Bank is still undecided about releasing its own CBDC (a central bank-backed digital currency, similar to China’s digital yuan). Mutton stated that if the UK issued a govcoin, the technology would be substantially different from Bitcoin’s because to the latter’s “performance shortcomings and energy inefficiency.”
According to a recent Goldman Sachs research, Bitcoin is still not a “investable asset class.” Despite rising institutional backing for the currency, BTC acceptance is still far from universal. The news comes just days after the Wall Street behemoth announced intentions to begin trading Ethereum derivatives contracts and to begin offering Bitcoin futures contracts.
Finally, China’s assault on digital currencies reached a new level this week, when the Ya’an municipal administration in Sichuan ordered energy firms to turn off the electricity to Bitcoin mining facilities. The country’s Science and Technology office, as well as the province’s energy agency, have both warned miners that they must close by next Friday.
XRP and Dfinity
Among the top 10 cryptocurrencies by market capitalisation, XRP experienced the biggest fall. It dropped 6.3 percent overnight to 79 cents.
Ripple, the progenitor of XRP, has just won the public relations war against the Securities and Exchange Commission in the United States. The SEC filed a complaint in December alleging that Ripple was selling XRP as an unregistered security.
Ripple won a discovery motion in April seeking information on the SEC’s internal policy approach to crypto market giants Bitcoin and Ethereum. Ripple’s attorneys want to know if the SEC was biassed in its claims regarding XRP.
Later in the same week, Ripple won another ruling stopping the SEC from receiving eight years worth of financial records from Ripple CEO Brad Garlinghouse and his predecessor Chris Larson.
The SEC sought two additional months last week before disclosing internal Bitcoin and Ethereum papers and communications. It claims to have gathered 25,000 papers and is currently analysing “tens of thousands” more, but it needs to interview former workers to make sense of the information.
Finally, Dfinity’s Internet Computer (ICP) token fell out of the top twenty in terms of market capitalisation yesterday night. It fell 8% overnight and is now trading at a negative $48.63. It’s a huge setback for the ambitious and much-hyped initiative that bills itself as the blockchain-based alternative to the $370 billion cloud computing business. The currency was momentarily valued $730 upon its debut.
It’s not a great day for crypto, but it’s not a terribly crippling crash either.