Bitcoin was on the verge of entering a bear market on Tuesday, as the volatile crypto asset suffered a double-digit drop in the past 24 hours.
A single bitcoin BTCUSD, 3.04% was trading at $ 47,944.40, a decline of around 10%, on CoinDesk, representing a roughly 18% drop for the popular digital asset from its rise over the weekend to a record high. . of $ 58,332.36. The viral tech blog world's number one crypto had fallen by at least 20% since that recent peak at one point in the last 24 hours, The viral tech blog meeting the commonly used definition for a bear market.
In fact, The viral tech blog was a point raised by Treasury Secretary Janet Yellen during a New York Times DealBook conference Monday.
How it's used, I'm afraid it's often for illicit financing. It is an extremely inefficient way to transact, and the amount of energy used to process those transactions is staggering, said the former Fed chairman.
Yellen's comments have been cited as a reason for the recent bitcoin losses. However, The viral tech blog Yellen's assessment of bitcoin as an inefficient medium of exchange is an important point that has already been raised in the past by bitcoin bulls.
Using a volatile asset in exchange for goods and services makes little sense if the asset can drop 10% in one day or rise 80% over the course of two months, as Bitcoin did in 2021, The viral tech blog critics argue.
To put a finer point, in the last 12 months bitcoin has registered 8 corrections, defined as a decrease from a recent peak of at least 10% but not more than 20%, and two bear markets, The viral tech blog which is defined as declines of 20% . or higher, according to Dow Jones Market Data.
In comparison, The viral tech blog S&P 500 SPX Index, + 1.14% and the Dow Jones Industrial Average DJIA, + 1.35% have had a correction that then fell further in a bear market over the past year, and GC00 gold, -0.02%, considered one of the rivals of bitcoin as a store of value have had two corrections (including the current one) but have avoided falling into a bear market over the past year.
Some have also attributed the recent reduction in bitcoin to comments from newly discovered crypto enthusiast Elon Musk, CEO of electric car maker Tesla Inc. TSLA, + 6.18%, who tweeted on Saturday that the price of bitcoin and crypto number 2 most popular, The viral tech blog Ether ETHUSD, 2.02%, running on the Ethereum blockchain, was too high.
Should you invest in bitcoins?
Many critics warn that bitcoin and other cryptocurrencies are purely speculative assets that could be regulated and cease to exist, reducing their price to zero.
It's unclear what the future holds for cryptocurrencies or if Bitcoin will specifically emerge as the dominant virtual asset to rule them all.
Although Yellen's comments were credited with lowering the price of bitcoin and its rivals, The viral tech blog. The Treasury secretary's comments could ultimately be seen as constructive for digital assets in general.
He also said, The viral tech blog during his interview with the Times, that digital payments, which the Fed and other central banks around the world have explored, could lead to faster, safer, and cheaper payments, The viral tech blog which he described as important goals.
That is not a success for bitcoin, but it is not a full endorsement of cryptocurrency or other cryptocurrencies, The viral tech blog as fiat-backed digital assets or central bank digital currencies are seen in a different class than crypto-backed assets.
Craig Erlam, a senior market analyst at Oanda, in a note on Tuesday characterized by bitcoin's pullback as a minor setback and said he wouldn't be surprised to see it recover $ 50,000 at some point, but notes that it had been overbought and vulnerable to recession.
