As of a record few days, Bitcoin has plunged into more than its biggest drop in seven weeks. At 2:52 p.m., the largest cryptocurrency fell 8.5% to $ 55,810.32. It fell 15.1% in Singapore on Sunday to $ 51,707.51. Ether, the second-largest coin, fell nearly 18% before making up for the loss.
Various reports online attribute the decline to speculation that the US Department of the Treasury may crackdown on money laundering through digital assets. Last week, Bitcoin hit an all-time high of $ 64,869.78 before its Nasdaq debut on cryptocurrency exchange Coinbase Global Inc. After skyrocketing more than 800% in the past year, the original Bitcoin cryptocurrency is worth more than $ 1 trillion.
The growing mainstream acceptance of cryptocurrencies has spurred Bitcoin’s rebound and pushed other tokens to record highs. After companies from PayPal to Square began enabling Bitcoin transactions on their systems, interest in crypto increased again, and Wall Street companies such as Morgan Stanley also began providing access to tokens to some of the wealthiest customers.
Although people have been concerned about its volatility and the practicality of payment methods. Dogecoin, a joke coin, was powered by the likes of Elon Musk and Mark Cuban and fell more than 110% on Friday. The online communication said in a blog post on Friday that the demand for tokens was so strong that investors trying to trade on Robinhood collapsed the site.
As the investor base expands, governments around the world are taking a closer look at the risks in the industry. Federal Reserve Chairman Jerome Powell said last week that Bitcoin is “a bit like gold” because it is more of a speculative method than a means of payment. Christine Lagarde, president of the European Central Bank, pointed to Bitcoin’s role in promoting criminal activity in January, saying that the cryptocurrency has been promoting “interesting businesses.”
The Central Bank of Turkey has banned the use of cryptocurrencies as a payment method since April 30, stating that the degree of anonymity behind digital tokens poses the risk of “sunk” losses. Reuters quoted an unnamed senior government official in March as saying that India will propose a law banning cryptocurrencies and impose fines on anyone who trades or owns such assets. Cryptocurrency companies are strengthening their leadership positions to shape the emerging regulatory environment and address people’s skepticism about digital tokens. Bitcoin’s most fervent supporters see it as a modern store of value and inflation, while others worry that a speculative bubble is forming.