After starting the week on a stable note, cryptocurrencies have come under pressure due to record weekly Bitcoin outflows. As a result, the entire cryptocurrency market plunged on Tuesday and prices remained weak on Wednesday despite a rebound.
At around 10:50 am, Bitcoin managed to surpass $33,000 but still remains weak in comparison to gains seen last week. Smaller rival Ethereum (Ether) also rebounded but remains below $2,500.
It may be noted that Bitcoin fell to a 3-week low on Tuesday after the US Internal Revenue Service called for lawmakers to provide authority for tighter reporting rules on crypto transfers.
Read | Is it safe to invest in cryptocurrencies? Here is all you need to know
The IRS chief Charles Rettig said that the US Congress needs to provide a clear statutory authority for the tax agency to collect information on cryptocurrency transfers valued at over $10,000 that largely go unreported at the moment.
Another reason why cryptocurrencies fell was confirmation from British fund manager Ruffer Investment Management that it exited its Bitcoin bet in April with a $1.1 billion profit amid higher volatility.
“Long term, we remain interested in digital assets and the role they can play in real wealth preservation,” the spokesperson told news agency Reuters. “In the short term, following the sharp increase in the bitcoin price, we felt bitcoin was exhibiting more risk.”
Not only Bitcoin but the developments also dented the value of other popular cryptocurrencies like Ripple, Cardano, Dogecoin, Stellar, Polkadot and Litecoin. However, all of them were trading higher than their value 24 hours ago.
The recent plunge has again worried investors and indicates that virtual coins may face further uncertainty in future. But cryptocurrency backers feel that the uncertainty will not last for a long period and added that the prices will recover soon.
Here are the latest prices and trends of popular cryptocurrencies:
|
Cryptocurrency |
Price (US Dollar) |
24-hour change |
Market cap (Billion) |
Volume (24 Hours) |
|
Bitcoin |
33,568.29 |
2.26% |
$628.84 |
$42.24 billion |
|
Ethereum (Ether) |
2,484.23 |
0.20% |
$288.70 |
$44.31 billion |
|
Dogecoin |
0.322837 |
1.10% |
$41.91 |
$4.40 million |
|
Litecoin |
156.99 |
0.65% |
$10.65 |
$4.02 billion |
|
XRP (Ripple) |
0.861038 |
0.83% |
$85.95 |
$7.84 million |
|
Cardano |
1.54 |
2.36% |
$49.48 |
$4.84 billion |
Despite the weakness observed yesterday, MicroStrategy Inc, a major bitcoin corporate backer, said it was offering $500 million in bonds and the proceeds would be used to buy Bitcoin.
Meanwhile, news agency Reuters reported that leading cryptocurrency exchanges are also exploring ways to set up in India, following in the footsteps of market leader Binance.
Sources told the news agency that US-based Kraken, Hong Kong-based Bitfinex and rival KuCoin are actively scouting the market, which analysts say would only get bigger if it was given a free rein.
“These companies have already begun talks to understand the Indian market and the entry points better,” said one source.
(DISCLAIMER: The cryptocurrency prices have been updated as of 11:00 am and will change as the day progresses. The list is intended to give a rough idea about popular cryptocurrency trends and will be updated on a daily basis.)
This news is republished from another source. You can check the original article here.
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